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MNI DATA IMPACT: BOJ Consumption Index Rebounds In June

(MNI) Tokyo
TOKYO (MNI)

The Bank of Japan's Consumption Activity Index rose 8.6% m/m in June, the first rise in four months after May data was revised lower, data released Friday showed, confirming private consumption rebounded after the coronavirus-driven weakness in March, April and May.

The consumption index is expected to rise in July but BOJ officials are concerned private consumption is losing momentum amid the number of infections has been increasing.

Japan's real average household spending fell 1.2% y/y in June for a ninth straight decline following a 16.2% decline in May, government data showed earlier in the day.

But the spending rose rose 13% m/m in June for the first rise in four months following -0.1% in May.

The BOJ's Consumption Activity Index is designed to forecast revised private consumption, not act as a preliminary estimate. The Cabinet Office will release the preliminary Q2 GDP on Aug. 17.

MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
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MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
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