MNI BRIEF: BOJ Aug Consumption Activity Index Drops 0.0% M/M
MNI (TOKYO) - The Consumption Activity Index fell for the second consecutive month to 0.0% in August following July's revised 0.1% fall (from +0.3% in July) as typhoons impacted spending, data released by the Bank of Japan showed on Monday.
BOJ officials expected consumption to remain solid as income conditions improved. (See MNI POLICY: BOJ Rate View Intact, Despite Dovish PM Remarks)
The Bank in September upgraded its assessment on private consumption, noting it “has been on a moderate increasing trend.” The previous view was that private consumption was resilient.
Spending linked to services remained firm but spending on non-durable goods lacked strength as high prices continued to squeeze consumers’ purchasing power.
The BOJ's Consumption Activity Index is designed to forecast revised private consumption, not act as a preliminary estimate.