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Politics : Formerly About Applied Materials
AMAT 267.87-0.6%Dec 5 3:59 PM EST

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To: StanX Long who wrote (60005)2/5/2002 2:32:27 AM
From: StanX Long  Read Replies (1) of 70976
 
Japan's coincident indicator may rise to 50 in Jan
Tuesday February 5, 3:00 PM

sg.biz.yahoo.com

TOKYO, Feb 5 (Reuters) - Japan's diffusion index of coincident indicators may rise to the key level of 50 in January thanks to an expected gain in industrial output as inventory adjustments progress, a government official said on Tuesday.



The coincident index was at 33.3 in December, Cabinet Office data showed on Tuesday. It was the 12 straight month for the index to stay below the critical reading of 50, seen as suggesting the economy may contract in coming months.

"There is a possibility the index will rise near 50 in January," a Cabinet Office official said. "But it depends on industrial production."

If January industrial output meets the 1.4 percent forecast for manufacturers' output -- a close proxy of industrial output

-- the production components could be positive and help push up the coincident index, the official said.

"We need to closely monitor developments in the U.S. economy and progress in inventory adjustments," he said.
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