Home Economy Japan”s industrial production down 9.4 percent in February

Japan”s industrial production down 9.4 percent in February

By KUNA,

TOKYO : Japan’s industrial production in February fell 9.

4 percent from the previous month due to slumping exports of cars and high-tech goods, the government said Monday.

Factory output, the measure of how many goods manufacturers are making, plunged for the fifth month in a row, the longest slump since November 2001 with indexes falling in all 16 industrial sectors except oil and coal products, according to preliminary data released by the Ministry of Economy, Trade, and Industry.

Although the month-on-month drop was better than January’s record 10.2 percent plunge, the margin of decline was still the third-biggest on record.

According to the ministry, the fall is attributed to a sharp decline in production of automobiles bound for Europe and the Middle East, and semiconductor producing equipment for the US and South Korea.

The ministry said output in the world’s second-biggest economy is “rapidly declining,” keeping its assessment unchanged for the fourth straight month.

The index of inventories dropped a record 4.2 percent, down for the second straight month.

Looking ahead, the ministry said manufacturing output is expected to rise 2.
9 percent in March and expand 3.1 percent in April.

Major automakers, such as Toyota Motor Corp. and Nissan Motor Co., have proceeded with production cuts and reduced their stockpiles.

The ministry meanwhile hinted the worst of Japan’s manufacturing slump would be over in the coming months.(end) mk.ris KUNA 301259 Mar 09NNNN