Japan’s leading economic index, which gauges the outlook for the months ahead using indicators such as job offers and consumer sentiment, increased to 112.4 in February 2026, up from 112.1 in the previous month and slightly above market forecasts of 112.3. The reading reached its highest level since August 2022, underscoring a gradual improvement in the economic outlook. Labor market strength persisted, with the unemployment rate declining to 2.6% from January’s 1.5-year low, while employment rose by 10 thousand to 68.27 million. At the same time, consumer confidence climbed to its highest level since April 2019, as concerns over persistent cost pressures eased following Tokyo’s large-scale stimulus program designed to bolster household spending and stabilize growth.
