Japan poised for growth

Despite Japan falling back into recession in 2004, things do look like picking up.

An index of leading economic indicators in Japan rose to 55 percent in January from a revised 41.7 percent in December, the Cabinet Office said yesterday. A number above 50 points to an expansion in three to six months. This is the first time in five months that the index is above 50.

Over in the US, the Conference Board's leading index for Japan was unchanged in January, the third consecutive month with no change. The Board comments that the "flatness of the leading index since the middle of 2004 suggests that the economy will grow in coming quarters, but probably at a very sluggish pace".