Coronavirus outbreak may push Japanese economy into recession disrupting supply chains, hurting consumer sentiment

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The spread of coronavirus is beginning to affect Japan's real economy


 The novel coronavirus cases continue to be newly identified in various parts of Japan, and total cases confirmed in Japan by March 4 topped 1,000 including cruise ship passengers and crew. 

 The spread of coronavirus is beginning to affect Japan's real economy. According to a survey by the Japan Automobile Dealers Association, the total number of orders received by eight dealers in February 2020 was down hefty 17.1% from the same month of the previous year. 

 New car registrations in February also declined 10.7%, to 268,302 units. In China the automobile parts procurement network for Japanese automakers may be badly disrupted, and it is concerned that sales and profits of those companies will further stagnate. 

 In addition, large events are canceled and schools are closed simultaneously nationwide to prevent the spread of the infections. 

 Parents scramble to find childcare services for their children and terrified people have started to buy up daily necessities such as toilet paper, face masks, pre-packaged foods and bags of rice having retail stores shelves almost empty. 
Coronavirus outbreak may push Japanese economy into recession disrupting supply chains, hurting consumer sentiment

 According to a consumer confidence survey released by the government on March 3, the Consumer Confident Index, which indicates consumer sentiment, deteriorated for the first time in five months in February. 
Coronavirus outbreak may push Japanese economy into recession disrupting supply chains, hurting consumer sentiment

 Social anxiety associated with the novel coronavirus outbreak is becoming apparent and consumer sentiment will be further deteriorated.

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