MNI BRIEF: BOJ Sep Consumption Index Shows Services Still Lag

The Bank of Japan's Consumption Activity Index rose 0.7% m/m in September, the first gain in two months, data released by the BOJ on Monday showed.

The BOJ data was consistent with the government's household spending data, which rose 5.0% m/m in September. Service consumption continued to be hit by the pandemic state of emergency in August and September but demand for non-durable goods was relatively solid. The BOJ at the October meeting slightly upgraded its assessment on private consumption as showing "signs of a pick-up recently, although downward pressure has remained strong, particularly on service consumption."

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