MNI BRIEF: Consumption Index Supports BOJ View
The BOJ's consumption index posted its first rise in three months.
The Bank of Japan's Consumption Activity Index posted its first rise in three months, up 0.6% in February following January's 0.1% fall, supporting the BOJ’s view that private consumption has been resilient.
The data is consistent with government’s real household spending index, which rose 1.4% m/m in February, the first rise in five months following -2.1% in January.
However, consumer spending, mainly automobile sales, fell in March due to the temporary suspension of car production.
The average index for the January-February period fell 0.6% q/q from the previous quarter, the second straight drop. The BOJ's Consumption Activity Index is designed to forecast revised private consumption, not act as a preliminary estimate.
MNI reported this week the BOJ would consider raising its policy rate from zero to 0.1% should services prices data due on April 26 indicate significant upside risks to prices. (See MNI POLICY: April Services Data Key For Further BOJ Rate Move)