MNI 5 THINGS: Japan June Consumer Confidence Slips on Costs

--Japan June Consumer Confidence Index 43.7 Vs May 43.8

--Japan Govt Keeps View: Consumer Confidence Weak

--Official: Confidence Also Linked To US Trade Row Developments

     TOKYO (MNI) - Japan's consumer confidence index fell slightly in June,

posting the first month-on-month drop in two months, as concerns about the

rising cost of living and U.S. trade disputes linger, data released Friday by

the Cabinet Office showed.

     "Households' views on overall economic well-being have been weighed down by

rising gasoline and utility costs. People are sensitive to news that dry

cleaning prices rose in June and bread prices will rise in July," a Cabinet

Office official said. "People's views on income gain have also been down because

real wages continue to fall."

     Developments in the U.S.-China trade row are also linked to the

month-to-month fluctuation in the consumer confidence index.

     When it was heating up in April, clouding the global growth prospects, the

index fell. But when the risk receded in May, the index rebounded. Since then,

concerns over the impact of a U.S. trade war on global growth have grown,

hurting share prices and sentiment.

     The key points from the monthly Consumer Confidence Survey of households

with two or more people, which was conducted on June 15.

     * The consumer confidence index slipped 0.1 point to 43.7 in June on a

seasonally adjusted basis, posting the first month-on-month drop in two months

after rising 0.2 point in May. The three-month moving average of the index

posted the fifth straight drop in June, down 0.2 point after falling at the same

pace in May.

     * The Cabinet Office maintained its assessment, saying, "Consumer

confidence is weak."

     * Consumers were more pessimistic about three of the four key aspects that

affect their sentiment -- overall economic well-being, income gain and whether

it would be a good time to buy durable goods over the next six months. The

sub-index on job prospects marked the second straight m/m rise.

     * The index on asset prices, which is not one of the sub-indexes used to

calculate overall consumer confidence, fell 0.1 point after being unchanged in

May and rising 0.6 point in April.

     * The survey also showed that the public's inflation expectations for 12

months ahead eased for the second straight month. The share of those projecting

price rises decreased to 81.7% in June from 82.1% in May. The share of

respondents forecasting lower prices increased to 3.3% from 3.2%.

--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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