Japan Govt. To Track Service Sector With New Index
The Japanese government will release a new type of economic index from next month that tracks service-sector activity. It is the first such gauge to be created in 38 years.
The Cabinet Office currently calculates its monthly Coincident Index of business conditions based on components such as production and employment.
However, some analysts have pointed out that the index puts the focus on the manufacturing sector, and does not reflect the increasing importance of the services industry.
The Cabinet Office decided to create the new index based on the advice of a panel of experts. It factors in data on dining, travel, healthcare and other services.
The first reading is due to be released in late August as a reference index.