TOKYO, 30th April, 2024 (WAM) -- Japan's industrial output fell 2.0 percent in fiscal 2023 from the previous year for the second straight year of contraction, as demand for semiconductors and chip manufacturing equipment weakened in China and other Asian countries, Kyodo News quoted government data as showing Tuesday.
The production index at factories and mines in the year ended March stood at 102.8 against the 2020 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report. The latest drop followed a 0.3 percent decline in fiscal 2022.
According to the ministry, demand for production machinery, including chip manufacturing devices, shrunk from July to December amid an economic slowdown in China. Demand was also sluggish in the United States and Europe.
Auto production saw a significant recovery due to an easing chip shortage during the fiscal year, but that was not strong enough to make up for the decrease in production machinery equipment, a ministry official said.
The annual index of industrial shipments declined 1.6 percent to 102.0, while inventories fell 0.9 percent to 99.7.
Industrial output in March rose a seasonally adjusted 3.8 percent from the previous month to 101.1, after a 0.6 percent decline in February, lifted by the resumption of production at some Toyota Motor Corp. and Daihatsu Motor Co. factories following data-rigging scandals.
The index of industrial shipments climbed 4.3 percent to 100.0, while inventories rose 1.1 percent to 102.7.