MNI DATA IMPACT: Japan Jun Sentiment Down, L/T Infl Outlook Up

--BOJ June 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

economic data, the latest release showed.

     These are the key points from the survey, published Friday:

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

5.8 points to -25.0 in June, the fourth straight quarterly drop after falling

4.9 points to -19.2 in March. More people said sentiment worsened, judging from

income, business conditions and economic data.

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

marked the first drop in two quarter, down 5.5 points to -36.1 in June after

rising  1.4 points at -30.6 in March.

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

prices to rise in the next year stood at 80.5% in June, up from 78.7% in

March. Just 2.5% of those responding said prices would fall in the next year,

down from 2.6% three months earlier. Those saying prices would be little changed

12 months ahead slipped to 16.6% from 18.1%. The median CPI forecast stayed at

+3.0%.

     --Looking five years ahead, 83.4% said prices would rise, up from 82.3%

three months earlier. Meanwhile, 4.1% of respondents expect prices to fall,

compared with 4.2% in March. Those saying prices would be little changed fell

to 10.9% from 11.4%. The median forecast stayed at +2.0%.

     --The survey was conducted between May 9 and June 4 and of the 4,000

people polled, 2,050, or 51.3%, responded to the BOJ survey.

--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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