JAPAN’S industrial output in February fell 2.1 per cent from the previous month, the first contraction in three months, dragged down by weak output in the motor vehicle sector, government data showed Tuesday, with the impact of the Iran conflict likely to be felt in the coming months.
The decrease followed an upwardly revised expansion of 4.3 per cent in January. The Ministry of Economy, Trade and Industry maintained its basic assessment of industrial production from the month before, saying it “fluctuates indecisively”. Output dropped in 12 of the 15 sectors, falling 3.6 per cent in the motor vehicle sector after an 8.1 per cent rise in the previous month, amid a decline in orders for small trucks and a decrease in production of car engines for overseas markets, a ministry official said.
Reduced production of fabricated metals, including aluminium for industrial use, and of electronic parts and devices such as liquid crystal display panels contributed to the overall fall, while the iron, steel and nonferrous metals sector saw an expansion.
According to a poll of manufacturers, output is expected to rise 3.8 per cent in March and 3.3 per cent in April, the ministry said.
But the official cautioned that the survey, conducted in early March, may not have factored in the impact of the war against Iran launched by the United States and Israel on 28 February, which remains “highly unpredictable” and warrants “exceptional attention”.
Kyodo
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