Japan’s manufacturing activity dropped to a two-year low in March and posted its sharpest decline since records began in October 2001, a survey showed today.

The disruption of production operation and supply chains caused by the earthquake and tsunami devastation caused the index of purchasing managers to fall to 46.4 from 52.9 in February, according to both JMMA and Market Economics.

The survey offered a first insight into quantitative assessments of the damage created by the tsunami and earthquake on March 11, which caused a severe nuclear safety emergency and extensive power deficiency.

Cost inflation rose at the quickest rate in two and a half years and new orders fell at the steepest pace in two years, according to the release.

It was also highlighted that data was collected with great difficulty indicating just how badly the events in Japan had affected manufacturing.

According to Markit, just 67 percent of the average number of replies was received in total, only 5 percent of average replies from Tohoku, 60 percent from the Kanto region and 85 percent from car manufacturing city Chubu.