Japanese businesses indicate pessimism

TOKYO, March 25 (UPI) -- A government poll in Japan released Tuesday found confidence in the economy among Japanese businesses fell to a record low in the first quarter of 2007.

Fiscal policy minister Hiroko Ota said, "the data obviously reflect the U.S. deceleration and high oil prices.'

Ota noted that the yen's appreciation against the U.S. dollar has hurt Japanese businesses, which rely extensively on the export market.

"We should pay full attention to increasing downside risks," Ota said at a news conference, Kyodo reported.

Ota said the Japanese companies were expecting a slow recovery beginning in the second half of 2008, the report said.