Asia

Friday, June 5, 2020 - 01:25

MNI DATA IMPAT: BOJ Consumption Index Dips Again In April


--Consumer Spending Again Weighs On Japan Consumption

TOKYO (MNI) - The Bank of Japan's Consumption Activity Index posted a second straight m/m drop in April, down 9.2% on a seasonally adjusted basis following a 7.6% drop in March, data released Friday showed.

The data showed private consumption was hit hardest by the spread of the coronavirus after slightly rebounding in February from October's post-sales tax hike drop.

The consumption index is expected to drop again in May but gradually recover in or after June as the government lifted the state of emergency on May 25, easing the social restrictions somewhat.

Japan's real average household spending fell 11.1% on year in April for the seventh straight decline following -6.0% in March, the data released this morning showed. It was the largest fall since comparable data became available in 2001.

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 second reading of Q1 GDP on Monday.

Private economists expected consumer spending to be unchanged at -0.7% q/q.

--MNI Tokyo Bureau; tel: +81 90-2175-0040; email: hiroshi.inoue@marketnews.com
--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MAJDS$,M$A$$$,M$J$$$]

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