MNI DATA IMPACT: BOJ Consumption Index Rebounds In August

The Bank of Japan's Consumption Activity Index rose 0.8% m/m in August turning positive for the first time in two months, data released Wednesday showed.

July's index was revised upward to -1.4% from -2.4%.

The data confirmed that private consumption rebounded in August, albeit slowly, from July when spending fell due to the pandemic and poor weather.

In its assessment, the BOJ said, "Private consumption has picked up gradually on the whole, although consumption of services, such as eating and drinking as well as accommodation, has remained at a low level."

Bank officials are worried that private consumption could lose momentum as income and wages remain weak.

Japan's real average household spending fell 7.6% on-year in July. It was the 10th straight monthly drop and followed June's 1.2% decline. The government will release August data on Friday.

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