Japan’s Nov. industrial output falls for 3rd straight month

Japan’s industrial output in November fell 0.1 percent from the previous month, declining for the third straight month, due to weak overseas and domestic demand, government data showed Wednesday.

The basic assessment was downgraded for the second consecutive month, with industrial production described as “weakening,” compared with October’s assessment that it was “moderately picking up but showing weakness in part.”

The seasonally adjusted index of production at factories and mines stood at 95.2 against the 2015 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report.

In addition to slowing machinery demand in Europe and the United States, demand for equipment in China was low amid restrictions related to coronavirus infections, a ministry official said.

The latest output figure followed a downwardly revised decline of 3.2 percent in October.

Of the 15 industries covered by the survey, eight logged output falls and seven showed increases.

By component, production of general-purpose and business oriented machinery marked the biggest contraction of 7.9 percent from the previous month, led by conveyors and transport cranes, contributing the most to the overall drop.

The production machinery sector also saw a notable fall, down 5.7 percent from the previous month, with decreased output of semiconductor and flat panel manufacturing equipment, according to the data.

The seven industries reporting output increases included chemicals, excluding inorganic and organic chemicals, and medicine, which saw an increase of 5.7 percent from the previous month led by face lotions and other items.

Based on a poll of manufacturers, the ministry expects industrial output to climb 2.8 percent in December and dip 0.6 percent in January.

“It is necessary to be aware of the downside risk stemming from rising prices, on top of the economic situation in Japan and overseas,” the official said.

The index of industrial shipments decreased 0.5 percent to 93.0, down for the third straight month, while that of inventories rose 0.3 percent to 103.6.

SOURCE: NEWS AGENCIES