TOKYO (Reuters) - Japan's April service sector sentiment index fell to its lowest reading since 2014 on worries about weak consumer spending and the economic impact from deadly earthquakes in southern Kyushu island last month.
The survey of workers such as taxi drivers, hotel workers and restaurant staff - called "economy watchers" for their proximity to consumer and retail trends - showed their confidence slipped to 43.5, the lowest index reading since November 2014.
The Cabinet Office, which conducts the survey, said the economy showed weakness due to concerns about private spending and downward pressure on sentiment from the quakes.
"There are many worries such as the unstable global economy, an impact from the quakes, a strong yen and weak share prices and it is difficult to forecast the outlook," said a respondent from the retail industry in the survey.
"I think the situation will continue to be severe."
The outlook index, which indicates the level of confidence in future conditions, declined to 45.5 in April, also the lowest since November 2014.
"The prospect for the economy is uncertain, so corporations and consumers find it difficult to spend actively," said another respondent from the auto sector.
Japan's economy remains stagnant with economists expecting the data to show growth for January-March, due out next week, to be modest.
"There is an increasing uncertainty over April-June quarter due to economic downside risks," said Yoshiki Shinke, chief economist at Dai-ichi Life Research Institute.