Reading indicators: what is an index of 132.4 actually comparing?132.4 is not a count; it shows how many times the old level it is
The Existing Home Sales Volume Index released on October 30 stood at 132.4 and the Corporate Transaction Volume Index at 290.1. Both are indices with the 2010 average set at 100. So 132.4 means about 1.324 times the 2010 average and 290.1 means about 2.901 times; neither is a count of transactions. The consumer price index and the producer price index are built the same way, so getting used to reading indices makes published material much easier to follow.
- Existing Home Sales Volume Index (total), July 2026
- 132.4
- divided by the reference level (2010 average)
- 100
- Level relative to the 2010 average
- about 1.32 times
Key points
- An index sets a reference point at 100 and shows how many times that level today is. Both the Existing Home Sales Volume Index and the Corporate Transaction Volume Index use the 2010 average as 100
- The Existing Home Sales Volume Index total was 132.4, about 1.32 times the 2010 average. The Corporate Transaction Volume Index total was 290.1, about 2.90 times
- A bigger index number is not automatically better. If two indices count different things, comparing their levels means nothing (132.4 and 290.1 count different things)
- A figure such as up 0.2% month on month shows movement, not level. Read the level (132.4) and the movement (up 0.2%) separately
- Changing the reference year changes the index numbers. When placing figures alongside older material, check that the reference year is the same
What to do in practice
- When quoting an index, copy across the note that the reference year equals 100 along with it
- When charting different indices together, line them up by rate of change from a common reference year rather than by the level of the numbers
Statistics published by the government often use something called an index. It sets a certain year at 100 and shows how many times that level today is. In the figures released on October 30, the volume of existing homes bought by individuals was 132.4 and the volume of sales involving companies was 290.1. Since the 2010 average is 100, 132.4 is about 1.32 times that and 290.1 is about 2.9 times.
Points
- An index sets a certain year at 100 and shows how many times that level today is
- 132.4 means about 1.32 times the 2010 average, and 290.1 means about 2.9 times
- Comparing the levels of two indices that count different things does not mean anything
What the words mean
- index
- A number that sets one point in time at 100 and shows how many times that level today is
- reference year
- The year set at 100. If this differs, the index number differs even for the same thing
- Ministry of Land, Infrastructure, Transport and Tourism (MLIT): MLIT, Existing Home Sales Volume Index for July 2026 (Reiwa 8) released (trial operation)
- Ministry of Land, Infrastructure, Transport and Tourism (MLIT): MLIT, Corporate Transaction Volume Index for July 2026 (Reiwa 8) released (trial operation)
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