Japan and US show signs of slower growth

Evidence continues to mount that the global economy is slowing.

In Japan, the leading and coincident indices declined in May. Bloomberg reports:

Japan’s broadest indicator of economic health dropped for the first time in 14 months, signaling the recovery is losing momentum after rebounding from the worst postwar recession.

The coincident index, a composite of 11 indicators including factory production and retail sales, fell to 101.2 in May from 101.3, the Cabinet Office said today in Tokyo. The result matched the median estimate of 16 economists surveyed...

The leading index, a composite of 12 indicators including stock prices and consumer confidence, fell to 98.7 in May, the second straight decline, today’s report showed. Economists expect Japan’s annualized quarterly growth will be below 2 percent at least until the middle of next year, according to median estimates.

In the US, service industries joined their manufacturing counterparts in reporting slower growth in June. Again from Bloomberg:

Service industries in the U.S. expanded in June at a slower pace than forecast, indicating the economy was beginning to cool entering the second half.

The Institute for Supply Management’s index of non- manufacturing businesses, which covers about 90 percent of the economy, fell to a four-month low of 53.8 from 55.4 in May. The June figure was less than the median forecast of 55 in a Bloomberg News survey. Readings above 50 signal expansion. Orders slowed for a third month and employment declined.