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Japan's coincident index falls 0.4 point, govt cuts assessment

TOKYO, Oct 7 (Reuters) - Japan's coincident indicator index worsened in August and the government cut its view of the index, suggesting the economy might slip into recession as the U.S.-China trade dispute and slowing external demand dent recovery.

Previously, the government said the economy had stopped falling.

The index of coincident economic indicators, which consists of a range of data including factory output, employment and retail sales data, slipped a preliminary 0.4 point in August from the previous month, the Cabinet Office said on Monday.

The index for leading economic indicators, which is a gauge of the economy a few months ahead and is compiled using data such as job offers and consumer sentiment, fell 2.0 points from July. (Reporting by Kaori Kaneko Editing by Chang-Ran Kim)