Japan's economy contracts in March: report (by Michael Kitchen)

LOS ANGELES (MarketWatch) -- Japan's real gross domestic product contracted 0.8% during the month of March, swinging from growth in February, according to research cited in a Nikkei business daily report Tuesday. The Japan Center for Economic Research, which tracks Japanese GDP on a monthly basis, said consumer spending fell for the first time in fourth months, falling 0.4%, while exports were flat. But the study said both spending and exports likely improved in the first quarter, when compated to the October-December period, the Nikkei reported. "Whether the overseas economy recovers smoothly before the effects of eco-car subsidies and other policy measures weaken" will be key in determining the direction of the Japanese economy, the report quoted the JCER as saying.