MNI DATA IMPACT: Japan Consumer Confidence Down On Income View

--Japan May  Consumer Confidence Index 39.4 Vs Apr 40.4 

--Japan Govt Keeps View: Consumer Confidence Weakening

     TOKYO (MNI) - Japan's consumer confidence index fell 1.0 to a seasonally

adjusted 39.4 in May, the eighth straight monthly drop, the latest Consumer

Confidence Survey released by the Cabinet Office showed Friday.

     The dip, which came after a 0.1 point fall to 40.4 in April, was due

mainly to weaker earnings prospects and for purchases of durable goods.

     --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 four key sentiment indicators;

income conditions, the next six months would be a good time to buy durable

goods, employment prospects and overall economic well-being.

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

overall consumer confidence, showed the first m/m drop in two months, down 1.8 

points to 39.8 after rising 1.3 points to 41.6 in the previous month.

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

months fell for the first time in four months. The share of those projecting

price gains fell to 87.0% in May, after rising to 87.7% in April. The share of

respondents forecasting lower prices fell 3.1% from 3.4% in April.

--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

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