Japan retail sales drop in March

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TOKYO, April 27 (BBC): Retail sales in Japan plunged in March as consumers stayed away from shops in the wake of last month's earthquake and tsunami. Japanese retail sales fell 8.5 per cent last month, compared with March 2010, according to the latest data by the trade ministry. This is the biggest year-on-year drop in sales in the past 13 years. The data is the first indicator of the affect the devastation has had on Japan's consumption levels. The Japanese government has downgraded its outlook for the growth of the country's economy following the recent natural disasters. Analysts said that the uncertainty surrounding economic future had meant consumers avoided non-essential spending. While the earthquake and tsunami hit the north-east coast of Japan, analysts say that the economic impact has been felt all over the country.