Japan's industrial output plunges to 7-year low in March

Source: Xinhua | 2020-05-01

Japan's industrial output dropped to the lowest level in more than seven years in March as the COVID-19 outbreak disrupted factories' operation as well as domestic and overseas demand, government statistics showed Thursday.

The Ministry of Economy, Trade and Industry said in a preliminary report that the seasonally adjusted index of production at factories and mines decreased 3.7 percent compared to the previous month to 95.8 against the 2015 base of 100, marking the weakest level since January 2013.

The index declined for the second straight month following a revised 0.3-percent decrease in February, prompting the ministry to downgrade its assessment of production from "fluctuates indecisively but has weakened" to "declining."

Automakers suffered the most in the output index's decline as the spread of the virus caused temporary factory closures and a plunge in overseas demand.

Production of other products for export such as industrial robots and equipment used to manufacture semiconductors also dropped, while that of aircraft engine parts and paper products such as diapers went up.

A poll of manufacturers suggested that output will likely increase 1.4 percent in April and fall 1.4 percent in May.

However, some officials warned that these figures are likely too optimistic as the virus continues to spread.

Meanwhile, the index of industrial shipments dropped 5.0 percent to 94.0 in March, while the index of inventories increased 1.9 percent to 106.4.