Japan index of leading economic indicators gained from November, though the current economic situation is still uneven, government officials reported Wednesday.

The sluggish economic indices may present a challenge for the Bank of Japan, which has been trying to cool off inflation, but also keep the economy strong enough to boost real wages.

The leading economic indicators index struck 108.3 in December, up from 107.8 in November, though below a preliminary December estimate of 108.9, reported the Cabinet Office.

Among positive economic indicators in December were a lower the unemployment rate, which edged down by 0.1% in November to 2.4% in December, and a modest rise in household spending, reported the Cabinet Office.

Japan's index of coincident economic indicators, which tracks factory output, employment, and retail sales among other metrics, logged at 116.4 in December, up from 115.4 in November, though lower than the preliminary estimate 116.8, added officials.

The Cabinet Office assessment of the coincident economic index was "halting to fall."

The sluggish performance of the coincident index is likely of concern the Bank of Japan.

According to the Bank of Japan, the nation's gross domestic product (GDP) in 2024 rose a scant 0.1% from 2023 on year, while the estimate is for fiscal 2025 (started April 1) is for a gain of 1%.

The central bank modestly raised interest rates in 2024, citing inflation, but has also reiterated its intention for real wages to rise, thus spurring consumption and the general economy.

In addition, last Friday Bank of Japan Governor Kazuo Ueda said the central bank may again ramp up buying of Japanese government bonds (JGBs), if yields on bonds rose too rapidly.

Yields on benchmark 10-year JGBs slipped to 1.37% after the Governors statement, through still higher the sub-1% yields JGB's from 2012 until late 2024.