MNI DATA IMPACT: Japan Sentiment Dips in Sep; Infln Outlook Dn

The Bank of Japan's quarterly consumer survey saw sentiment continued falling in September from three months ago but the drop of the sentiment slowed, data released Thursday showed.

The BOJ's consumer current climate sentiment diffusion index fell 4.4 points to -75.6 in September, the ninth straight quarterly drop after falling 34.9 points to -71.2 in June. More people said sentiment had worsened, judging from income, media reports and the general bustle of shopping streets and dining establishments.

The consumer sentiment outlook index projecting conditions a year ahead rose for a second straight month, up 1.1 points to -26.6 in September after rising 14.5 points to -27.7 in June.

The survey also showed that the percentage of respondents expecting prices to rise in the next year stood at 63.3% in September, down from 66.7% in June. Just 6.6% of those responding said prices would fall in the next year, down from 8.7% three months earlier. Those saying prices would be little changed 12 months ahead rose to 28.7% from 23.0%. The median CPI forecast stood at +2.0%, down from +3.0% in June.

Looking five years ahead, 75.6% said prices would rise, up from 75.3% three months earlier. Meanwhile, 5.4% of respondents expect prices to fall, up from 5.3% in June. Those saying prices would be little changed fell to 16.0% from 16.2%. The median forecast stayed at +2.0%.

The survey also showed around 38.9% said income fell from a year earlier, down from 39.1% in June. About 9.5% said income rose from a year earlier, up from 8.9% in June

The survey was conducted between August 19 and September 14 and of the 4,000 people polled, 2,209, or 55.2%, responded.