MNI DATA IMPACT: Japan June Sentiment Dives; Infl'n Outlook Dn

--BOJ June Consumer Sentiment Diffusion Index Down 34.9 To -71.2

--BOJ Consumer Sentiment Outlook Up 14.5 to -27.7

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

fall sharply from three months ago, data released Tuesday showed.

     These are the key points from the survey:

     --The BOJ's consumer current climate sentiment diffusion index fell 34.9

points to -71.2 in June, the eighth straight quarterly drop after falling 6.5

points to -36.3 in March. More people said sentiment had worsened, judging from

overall conditions.

     --June's -71.2 is the lowest level since September 2009 when the index

stood at -72.3.

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

marked the first rise in two quarters, up 14.5 points to -27.7 in June after

falling 9.6 points to -42.2 in March, which was the lowest level since 41.8 in

December 2008.

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

prices to rise in the next year stood at 66.7% in March, down from 68.4% in

March. Just 8.7% of those responding said prices would fall in the next year,

up from 4.0% three months earlier. Those saying prices would be little changed

12 months ahead fell to 23.0% from 26.6%. The median CPI forecast stood at

+3.0%, up from +2.0% in March.

     --Looking five years ahead, 75.3% said prices would rise, down from 79.9%

three months earlier. Meanwhile, 5.3% of respondents expect prices to fall, up

from 5.1% in March. Those saying prices would be little changed rose to 16.2%

from 13.3%. The median forecast stayed at +2.0%.

     --The survey also showed around 39.1% said income fell from a year earlier,

up from 34.8% in March. About 8.9% said income rose from a year earlier,

down from 11.8% in March.

     --The survey was conducted between May 8 and June 3 and of the 4,000

people polled, 2,423, or 60.6%, responded. The government lifted its state of

emergency on May 25.

--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$$$,M$J$$$]