Japan's leading index of business conditions rose for the fifth-straight month in September, undergirding hopes the nation can emerge from mid-year economic sluggishness.

Japan's leading index of business conditions rose to 108.6 in September, up from 107.0 in August, and striking further above the 100-mark that separates expected growth from contraction, reported the Cabinet Office.

The leading index is a composite of 12 different indicators, such as job offers, consumer confidence, equity values, commodity prices, and housing construction, and is intended to predict the direction of the economy.

In September, machinery orders, consumer confidence and Japan's stock market all gained from August, according to the Cabinet Office.

The September official leading business index was roughly in line with recent purchasing manager index (PMI) reports from S&P Global.

The Japan composite PMI output index, a combination of the nation's manufacturing and services sectors, edged rose to 51.5 in October from 51.3 in September, and striking further above the 50-mark that separates growth from contraction, reported S&P Global, earlier this month.

In its most recent outlooks, the Bank of Japan, the nation's central bank, has estimated the nation's real gross domestic product (GDP)will expand by 0.7% in fiscal 2025 started April 1, and by the same amount in fiscal 2026.