Japan reduced its economic assessment as supporters of earthquake damage

April 12, 2011, 10: 19 am EDT by Aki Ito

April 13 (Bloomberg)--the Japanese Government has reduced its assessment of the economy, for the first time in six months after the earthquake on March 11 killed more than 12,000 and led to the worst nuclear crisis since Chernobyl.

"Even if the Japanese economy was picking up, he showed weakness" since the temblor, the Cabinet Office said in a report today in Tokyo. A lack of power resulting from a crippled nuclear facility, threaten to delay in the resolution of supply chain disruptions and rising prices of oil in pushing growth, he said.Economic and fiscal policy Minister Kaoru Yosano, said yesterday the effect of the economic disaster was greater than anticipated, plans for reconstruction of the indication can exceed Government projections. The Bank of the Japan last week established an emergency loan facility to help affected companies and warned that the event will be exercising a "strong downward pressure" on the third world economy. "There is so much uncertainty surrounding the Outlook, analysts Mizuho Research Institute wrote in a note this week. "We always know the extent of the damage caused by the earthquake and it is more and more research as the nuclear issue will be prolonged."Officials yesterday raised the level of severity of the accident at the nuclear plant of Tokyo Electric Power Co. has to match the level of the 1986 Chernobyl disaster. The Japan is expanding its evacuation area surrounding facilities and has interrupted shipments of vegetables containing radioactive material over the legal limit.Stimulus PackagePrime Minister Naoto Kan aims to compile a stimulus package this month, the cabinet members say could be as large as 4 billion yen (47 billion dollars).Manufacturers of Fujitsu Ltd., Nissan Motor Co. was not in a position of some of their facilities to reopen a month after the disaster and intact plants had cut operations to face power shortages. Damage by the earthquake will be as much as 25 billion yen, the Cabinet Office said producer price for March 23 increased at the fastest rate in 28 months in March, pushed to the top by the highest commodities and the constraints of supply after the earthquakeshowed a report of the Bank of the Japan published today.The fees companies pay for energy and unfinished goods rose 2% a year earlier, more than the estimate of 1.9% median gain of 27 economists surveyed by Bloomberg News. The number of items cost more exceeded those which become cheaper for the first time in nearly two years, signs that deflationary pressure is facilitated.Exports may decline, production stagnated and consumer spending is weakening, according to the report of today who downgraded all three of these components of. A survey of purchasing managers showed manufacturing deteriorated at the fastest rate at least nine years in March. Confidence among consumers of the Japan the nearest dealers plunged to a record pace since the Government began to track data in 2000.The, Ministry of finance is expected to release its report on the trade for March April 20. Data on retail sales are 27 April and industrial production reports are due on April 28 of the Ministry of trade.

-With the help of Mayumi Otsuma in Tokyo. Editors: Lily Nonomiya, Ken McCallum

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To contact the reporter on this story: Aki Ito in Tokyo at the aito16@bloomberg.net

To contact the editor responsible for this story: Paul Panckhurst in the ppanckhurst@bloomberg.net

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