MNI DATA IMPACT: BOJ Consumption Index Up; 2nd Straight Gain

The Bank of Japan's Consumption Activity Index rose 0.5% m/m in September, recording a second consecutive monthly gain, data released Monday showed.

The data confirmed that private consumption rebounded in September and August, albeit slowly, from July when the spending fell on the back of inclement weather and social distancing measures as the virus spread.

The latest BOJ assessment was "private consumption has picked up gradually on the whole, although consumption of services, such as eating and drinking as well as accommodations, has remained at a low level."

Bank officials are concerned spending could slow as income and wages remain weak, although much of the future outlook in Covid-19 dependent.

Japan's real average household spending fell 10.2% on year in September for the 12th straight drop following -6.9% in August.

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