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Japan's consumer sentiment slumps

Japan economy - Consumer sentiment at lowest level since June 2009
Japan economy - Consumer sentiment at lowest level since June 2009

Japanese consumer confidence fell in March from the previous month to its lowest since June 2009 as a record earthquake, tsunami and a nuclear crisis cast a shadow on the economy.

Japan's consumer sentiment index fell to 38.6 in the month, from a seasonally adjusted 41.2 in February, data from the Cabinet Office showed.

The government also downgraded its assessment of consumer sentiment, saying it is 'showing signs of weakness.'

Sentiment towards the Japanese economy has taken a battering after the devastating March 11 earthquake and the tsunami it unleashed ravaged swathes of the northeast coast.

Although sales of water and food surged after people stockpiled immediately after the quake and the nuclear crisis at the stricken Fukushima Daiichi plant, consumers have held off on other areas of spending such as entertainment and travel.