This February's economic trend index, which indicates the current state of the economy, declined for two consecutive months due to the impact of production suspensions by some automakers.
The Cabinet Office has downgraded its assessment of the current economic situation to a "downward phase change."
The Cabinet Office announced that the ``coincidence index'' for February, which indicates the current state of the economy, was 110.9 based on 2020 as 100, 1.2 points lower than the previous month.
This is the second consecutive month of decline in the index.
The main reason for this was a decline in automobile-related production and shipments due to some automobile manufacturers suspending production due to fraud surrounding the acquisition of certification.
In light of this, the Cabinet Office has downgraded its assessment of the current state of the economy from ``stagnation'' as of January to ``change in downward direction.''
The economic trend index is determined mechanically based on the numerical value of the index, and a ``downward phase change'' tentatively indicates that the economy may have already entered a recession.
On the other hand, the ``leading index,'' which indicates the outlook for the economy, rose for the first time in two months to 111.8, 2.3 points higher than the previous month.
The Cabinet Office states, ``The impact of the suspension of automobile production may be temporary, and analysis of economic trends will be considered once more data is collected.''