MNI BRIEF: BOJ Consumption Activity Index Rebounds In April

The Bank of Japan's Consumption Activity Index posted the first m/m rise in two months in April, up 0.5% following March's 1.0% fall and easing concern over the outlook for private consumption.

Spending linked to services remained solid, while non-durable goods were weaker as households saved on the back of higher prices.

The BOJ's Consumption Activity Index is designed to forecast revised private consumption, not act as a preliminary estimate.

The Cabinet Office will release second preliminary GDP for Q1 on Monday. Private economists expected private consumption to fall 0.7% q/q, unchanged from first preliminary estimate. The government said earlier today real household spending fell 1.2% m/m in April, the first drop in three months following the 1.2% gain in March.

While consumption is an important factor, BOJ officials will pay close attention to second quarter results to confirm the trend. (See MNI POLICY: BOJ To Consider Soft Yen Price Impact, Hikes Delayed)