JAPANESE consumer confidence fell in March from the previous month to its lowest since June 2009 as a record earthquake, tsunami and a nuclear emergency cast a shadow over the economy.
Analysts said the data bolstered the view that the March 11 disasters will force the world’s third largest economy to contract this quarter amid ongoing power shortages and production shutdowns across key industries.
Many see Japan sliding into a temporary recession after the quake and tsunami devastated infrastructure and manufacturing facilities in the north-east, as the nation plunged into its worst crisis since World War II.
The latest data showed Japanese consumer confidence took a hit, although analysts warned the survey was taken at the early stages of a disaster whose full impact continues to emerge.
The consumer sentiment index fell to 38.6 in March, from a seasonally adjusted 41.2 in February, Cabinet Office data showed. Readings below 50 indicate pessimism outweighing optimism.
It was the lowest reading since 36.6 in June 2009, but beat some forecasts of a plunge to around 30.
Photo by AFP
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