The spreading H1N1 swine flu virus is having an ill effect on a wide range of businesses from tourism to retailing, particularly in the western regions where the outbreak was first detected, industry sources said Friday.

Economists bemoaned the timing of the outbreak, fearing its impact on an already weakened economy.

The outbreak "could pour cold water on the Japanese economy at a time when it just started to bottom out and was about to recover," said Toshihiro Nagahama, chief economist at Dai-ichi Life Research Institute Inc.