Japanese retail sales fell in March at the fastest annual pace since 1998 and could remain weak for some time as last month's earthquake, radiation leaks from a damaged nuclear reactor and fears of electricity shortages weigh on consumer sentiment.
The data, the first measure of consumption since the natural disaster on March 11, highlights the need for the government to quickly resolve the nuclear crisis, ensure power supply and help manufacturers restore damaged supply chains so they can produce more goods. The government will submit to parliament this week its first spending package worth almost $50 billion to rebuild the battered north-east coast, but more spending is needed.