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Japan’s industrial output down 2.1% in Feb

"Attention needs to be paid to the novel coronavirus situation and supply chain conditions," an official of the ministry said. (AFP)
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31 Mar 2021 01:03:35 GMT9
31 Mar 2021 01:03:35 GMT9

TOKYO: Japan’s industrial production in February fell 2.1 percent from the previous month, down for the first time in two months, as automobile production slumped amid a global shortage of semiconductors, government data showed Wednesday.

The seasonally adjusted production index for the manufacturing and mining sectors stood at 95.7 against 100 for the base year of 2015, the Ministry of Economy, Trade and Industry said in a preliminary report. In the previous month, the index rose 4.3 percent.

The February result compared with a median forecast of a 1.3 percent drop among 19 economic research institutes surveyed by Jiji Press.

“Industrial production is picking up,” the ministry said in the report, keeping its assessment unchanged.

Production fell in 11 of 15 industry sectors surveyed.

Production of automobiles plunged 8.8 percent due to the global chip shortage and a disruption of parts supply caused by a strong earthquake off Fukushima Prefecture, northeastern Japan, in February.

Production of electrical machinery and information and communication equipment sagged 2.9 percent, chiefly reflecting sluggish sales of air conditioners.

The industrial shipment index stood at 94.4, down 1.5 percent, as automobile and auto parts shipments dropped. Shipments dropped at 12 sectors.

The inventory index came to 94.3, down 1.0 percent, with eight sectors seeing decreases.

Production at manufacturers is expected to decrease 1.9 percent in March but advance 9.3 percent in April, the ministry said.

“Attention needs to be paid to the novel coronavirus situation and supply chain conditions,” an official of the ministry said.

It is also believed that a recent fire at major semiconductor maker Renesas Electronics Corp.’s plant in Hitachinaka, Ibaraki Prefecture, eastern Japan, will be a downside risk to production.

JIJI Press

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