Japan’s industrial output drops for 1st time in 6 months in January

TOKYO, Feb. 28 (Xinhua) — Japan’s industrial production declined for the first time in six months in January with the output of transportation equipment dragging down overall production sectors in the recording period, the Ministry of Economy, Trade and Industry, said in a preliminary report on Tuesday.

According to the ministry, factory output dropped 0.8 percent in January from a month earlier, missing median market forecasts for a 0.4 percent rise, with the index of output at factories and mines standing at 99.8 against the base of 100 in 2010.

The ministry, however, despite the decline in January, maintained its basic assessment, stating that industrial production is shows signs of improving.

Looking ahead, the government said that industrial production is expected to rise 3.5 percent in February, although would retreat again in March by as much as 5 percent.

Production was dragged down in January by slumping output in sectors related to transport equipment, primarily, the ministry said, followed by chemicals, general-purpose, production and business oriented machinery.

The index of industrial shipments slid 0.4 percent to 98.5, and the index of inventories was flat at 107.5, the government’s data showed.

In terms of sectors that contributed to a fall in shipments in the recording period, transport equipment again was the major division, followed by chemicals and non-ferrous metals, the ministry’s data also showed.