MNI DATA IMPACT: Japan Dec Sentiment Down; L/T Infl Outlook Dn

--BOJ Dec Consumer Sentiment Diffusion Index Down 5.8 To -25.0

     TOKYO (MNI) - The Bank of Japan's quarterly consumer survey saw sentiment

fall from three months ago, as judged by income, business conditions and

footfall at retailers and restaurants, data released Thursday showed.

     These are the key points from the survey:

     --The BOJ's consumer current climate sentiment diffusion index fell 3.8

points to -29.8 in December, the sixth consecutive quarterly drop after falling

1.0 points to -26.0 in September. More people said sentiment had worsened,

judging from overall conditions.

     --The consumer sentiment outlook index projecting conditions a year ahead

marked the first rise in three quarters, up 9.1 points to -32.6 in December

after falling 5.6 points to -41.7 in September. September's -41.7 was the lowest

level since December 2008 when it hit -41.9.

     --The BOJ survey also showed that the percentage of respondents expecting

prices to rise in the next year stood at 73.3% in December, down from 79.8% in

September. Just 2.3% of those responding said prices would fall in the next

year, down from 2.7% three months earlier. Those saying prices would be little

changed 12 months ahead rose to 23.0% from 17.2%. The median CPI forecast stood

at +2.5%, down from +3.0% in September.

     --Looking five years ahead, 82.8% said prices would rise, down from 85.9%

three months earlier. Meanwhile, 3.4% of respondents expect prices to fall,

compared with 3.2% in September. Those saying prices would be little changed

rose to 11.2% from 9.8%. The median forecast stayed at +2.0%.

     --The survey also showed that about 32.9% cut their spending after the tax

hike, down from 59.8% at the 2014 March survey, just before the previous tax

hike.

     --The survey also showed that about 74% people said that they will continue

to cut spending even after spring 2020.

     --The survey was conducted between November 7 and December 3 and of the

4,000 people polled, 2,107, or 52.7%, responded.

--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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