MNI 5 THINGS: Japan May Consumer Confidence Rebounds But Soft

--Japan May Consumer Confidence Index 43.8 Vs Apr 43.6

--Japan May Consumer Confidence Posts 1st M/M Rise in 6 Months

--Japan Govt Keeps View: Consumer Confidence Weak

     TOKYO (MNI) - Japan's consumer confidence index edged up 0.2 point to 43.8

in May on a seasonally adjusted basis, posting the first month-on-month rise in

six months after falling 0.7 point in April amid firmer stock markets, the

Cabinet Office said Wednesday.

     "The U.S.-China trade friction was heating up in April, clouding the global

growth prospects, but that risk has receded, helping prop up consumer confidence

this month," a Cabinet Office official said.

     "On the other hand, the data also showed that people are concerned about

their real income as they see the prices for daily necessities, utilities and

fuels continue rising."

     The key points from the monthly Consumer Confidence Survey of households

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

     * The Cabinet Office maintained its assessment after downgrading it for the

first time in two months in April, saying, "Consumer confidence is weak."

     * The three-month moving average of the confidence index posted the fourth

straight drop in May, down 0.2 point after falling 0.3 point in April.

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

affect their sentiment -- overall economic well-being, job prospects and whether

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

sub-index on income gains marked the third straight m/m decline.

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

calculate overall consumer confidence, was unchanged after rising 0.6 point the

previous month.

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

months ahead eased slightly. The share of those projecting price rises decreased

to 82.1% in May from 82.3% in April. The share of respondents forecasting lower

prices increased to 3.2% from 2.9%.

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

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