Japan merchants see worst time in decade

Bloomberg

Japanese merchants said they’re facing the toughest economic environment since the global financial crisis as the country braces for the full impact of the spreading coronavirus.
Store managers, barbers, taxi drivers and others who deal directly with Japanese consumers haven’t been this pessimistic about their prospects since 2009, according to a Cabinet Office survey on Monday. An index measuring people’s outlook dropped more than 17 points to 24.6.
The Economy Watcher’s survey is one of the first consumer data points released by the Japanese government each month, so it gives a first glimpse of how people on the ground are responding to the fast-moving impact of the coronavirus. And the situation is likely to have gotten worse since the survey was taken at the end of last month.
Major department stores are reporting double-digit sales drops and a surging yen is likely to weigh heavily on confidence and exporter profits going forward.
A growing number of economists now expect the economy to contract more than 2% this quarter.
A separate report on Monday showed gross domestic product shrank in last quarter.

more than the government first estimated, underscoring just how vulnerable the economy was even before the virus hit. A growing number of economists now expect the economy to contract more than 2% this quarter, tipping the country into a recession that could be deep and
protracted.