Consumer confidence dives at record pace

Japanese consumer confidence fell at the fastest pace on record in April from the previous month, data showed Monday, after March's earthquake, tsunami and a nuclear crisis cast a shadow on the economy. The data showed consumer sentiment worsening to a two-year low of 33.1 in April from 38.6 in March, when the index plunged after Japan's biggest recorded earthquake and a tsunami on March 11 that devastated the north-east coast.
Readings below 50 indicate pessimism outweighing optimism. The 5.5 point drop month-on-month was the sharpest since records began in April 2004, according to the government. Although sales of water and food surged as people stockpiled immediately after the quake and the nuclear crisis at the Fukushima Daiichi plant, consumers have held off spending on areas such as entertainment and travel. Analysts have warned that voluntary self-restraint by consumers will exacerbate any downturn.