Japan's service-sector sentiment worsened in April on concern over the impact of higher U.S. tariffs, a government survey showed on Monday, a sign uncertainty over trade talks with Washington was beginning to take a toll on the fragile economy.
In the first survey since President Donald Trump's April 2 announcement of "reciprocal tariffs", the government downgraded its assessment to say the economy's recovery was weakening.
"While hopes of wage hikes remain, concern over the impact of U.S. trade policy is heightening along with the fallout from rising domestic prices," the government said in the survey.
A diffusion index measuring sentiment among service-sector firms, such as restaurants and department stores, stood at 42.6 in April, down 2.5 points from March, the survey showed, marking the fourth straight month of declines.
An index gauging confidence on the economic outlook two to three months ahead also fell 2.5 points to 42.7, the survey showed in a sign of widening gloom over the fragile recovery.
"Consumers may become more frugal given soaring prices of various goods and uncertainty over the U.S. trade policy," a supermarket store in southeastern Japan was quoted as saying in the survey.
