MNI DATA IMPACT: Japan Consumer Conf Index Dn On Durable Buys

--Japan Sept Consumer Confidence Index 35.6 Vs July 37.1 

--Japan Govt Keeps View: Consumer Confidence Weakening

     TOKYO (MNI) - Japan's consumer confidence index fell 1.5 points to a

seasonally adjusted 35.6 in September, the 12th straight monthly drop, the

latest Consumer Confidence Survey released by the Cabinet Office showed

Wednesday.

     September's 35.6 is the lowest level in the current survey framework.

     --The dip, which came after a 0.7 point fall to 37.1 in August, was driven

mainly by a weaker outlook for purchases of durable goods following Tuesday's

consumption tax hike to 10% from 8%.

     --The Cabinet Office left its assessment unchanged, saying consumer

confidence was "weakening". The government in February lowered the assessment

from January when it said that consumer confidence "showed weak moves."

     --Consumers were more pessimistic on all the four key sentiment sectors;

the next six months would be a good time to buy durable goods, overall economic

well-being, income and labor conditions.

     --The sub-index on asset prices, not included in calculating overall

consumer confidence, showed the first rise in two months, up 1.8 points to 40.6

after falling 2.1 points to 38.8 in the previous month. The Nikkei stock index

remained firm during the survey period.

     --The survey also showed the public's inflation expectation for the next 12

months fell to 6.2% from 6.8% for the second straight months. The share of those

projecting price gains rose to 87.6% in September, after falling 0.1 points to

87.0% in August, for the first rise in three months. The share of respondents

forecasting lower prices fell to 4.2% in September from 4.3% in August, for the

first drop in four months.

--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: M$A$$$,M$J$$$]