TOKYO, April 5 Reuters An index measuring the health of Japan39;s economy fell for the second straight month in February, government data showed on Friday, in a sign of weakening momentum after the country narrowly avoided a recession in the fourth quarter.

The government downgraded its assessment on the index for the first time since February 2019, underscoring the fragile nature of Japan39;s recovery that could complicate the central bank39;s deliberations on future interest rate rises.

The coincident indicator index, which measures the current state of the economy, fell 1.2 points in February from the previous month to 110.9, the data showed.

The decline was due to slumping exports and factory output, suggesting the fallout from auto production disruptions is widening.

The index is showing a shift toward a downward phase, the government said, revising down its assessment to one that suggests the economy may have hit the peak of a boomandbust cycle in the past few months.

Japan39;s factory output unexpectedly fell in February due to production and shipment disruptions at Toyota Motor and its smallcar unit Daihatsu, which could weigh on the broader economy due to their huge presence in the country39;s manufacturing sector.

Consumption also remains weak as rising living costs hit households before they see wage growth exceed the pace of inflation, leading some analysts to project Japan39;s economy to have shrunk in the first quarter.

Japan39;s fourthquarter gross…