Asia

Friday, October 11, 2019 - 01:23

MNI DATA IMPACT: Japan Sep Sentiment Down; L/T Infl Outlook Up


--BOJ Sept 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, the latest data showed on Friday.

These are the key points from the survey:

--The BOJ's consumer sentiment diffusion index for the current climate fell 1.0 points to -26.0 in September, the fifth straight quarterly drop after falling 5.8 points to -25.0 in June. More people said sentiment had worsened, judging from overall conditions.

--The consumer sentiment outlook index projecting conditions a year ahead marked the second straight drop, down 5.6 points to -41.7 in September after falling 5.5 points at -36.1 in June.

--The BOJ survey also showed that the percentage of respondents expecting prices to rise in the next year stood at 79.8% in September, down from 80.5% in June. Just 2.7% of those responding said prices would fall in the next year, up from 2.5% three months earlier. Those saying prices would be little changed 12 months ahead rose to 17.2% from 16.6%. The median CPI forecast stayed at +3.0%.

--Looking five years ahead, 85.9% said prices would rise, up from 83.4% three months earlier. Meanwhile, 3.2% of respondents expect prices to fall, compared with 4.1% in June. Those saying prices would be little changed fell to 9.8% from 10.9%. The median forecast stayed at +2.0%.

--The survey also showed that the number of people who bought electrical appliances before the sales tax hike to 10% from 8% on Oct. 1 stood 45.7%, higher than 41.3% at the March survey 2014 before the sales tax was raised to 8% from 5%.

--Meanwhile, the number of people who bought automobiles before the tax hike fell to 20.6% from 21.1% at the previous tax hike in 2014.

--The survey was conducted between August 8 and September 3 and of the 4,000 people polled, 2,028, or 50.7%, 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

[TOPICS: MAJDS$,M$A$$$,M$J$$$]

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