ID :
14531
Fri, 08/01/2008 - 10:21
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https://oananews.org//node/14531
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Japan's June industrial output down 2.0% on weak auto exports
TOKYO, July 31 Kyodo - Japan's industrial production in June fell by a larger-than-expected seasonally adjusted 2.0 percent from the previous month for the first decline in two months as the car industry slowed its output on weak exports, the industry ministry said Wednesday.
The index of production in mines and factories stood at 107.1 against 100 for the base year of 2005, the Ministry of Economy, Trade and Industry said in a preliminary report. The headline reading, which represented a downturn from the 2.8 percent increase in May, compares with the average market forecast of a 1.7 percent fall in a Kyodo News survey.
The ministry said the outlook for manufacturers' activities remains gloomy as Japanese exports are expected to continue a significant slowdown due chiefly to a U.S. economic slump, with analysts pointing to a growing chance that the Japanese economy will face a recession.
Industrial output ''remains at weak levels,'' the ministry said, downgrading its basic assessment after it said last month that output ''remains at the same level but on a weak note.''The downgrade was for the second consecutive month.
Transport equipment manufacturers, including carmakers, suffered a 5.3 percent fall in output, the second straight monthly loss, as production of vehicles destined for overseas markets slowed.
Passenger car production hit the brakes as exports to the Americas shrank. Subcompact cars, mainly destined for Africa and Latin America, underlined a weaker note.
Production in the general machinery industry, including the makers of machines for manufacturing semiconductors and flat-panel television displays, posted a 3.5 percent fall.
Immune from the downward trend, however, the information and communications equipment industry expanded output by 1.1 percent as new lineups of mobile phones arrived in the market. Technology companies boosted their TV production, expecting replacement demand ahead of the summer Olympic Games in Beijing in August.
The index of overall industrial shipments fell 3.0 percent to 106.9, while that of industrial inventories gained 1.2 percent to 106.0.
In the April-June period, Japan's industrial output fell 0.7 percent from the previous quarter, marking a second consecutive quarterly decline for the first time since the government adopted the 2005 base year. Output declined 0.7 percent in the previous three months.
Yasukazu Shimizu, senior economist at Mizuho Securities Co., said the chances of the Japanese economy falling into a recession are increasing.
''In the past, there has been no case that the economy did not recede after seeing an industrial output decline for the second quarter running.''Looking ahead, the ministry said production by manufacturers, the key component in the survey, is expected to decrease 0.2 percent in July and 0.6 percent in August.
''We are going to closely look into developments in the North American economy,'' a ministry official said, as the outlook for Japanese exports to the United States is now one of the chief concerns.
''While rising energy and raw material costs have hit companies' profits, we also care about the conditions of inventories at manufacturers,'' the official said.
The index of production in mines and factories stood at 107.1 against 100 for the base year of 2005, the Ministry of Economy, Trade and Industry said in a preliminary report. The headline reading, which represented a downturn from the 2.8 percent increase in May, compares with the average market forecast of a 1.7 percent fall in a Kyodo News survey.
The ministry said the outlook for manufacturers' activities remains gloomy as Japanese exports are expected to continue a significant slowdown due chiefly to a U.S. economic slump, with analysts pointing to a growing chance that the Japanese economy will face a recession.
Industrial output ''remains at weak levels,'' the ministry said, downgrading its basic assessment after it said last month that output ''remains at the same level but on a weak note.''The downgrade was for the second consecutive month.
Transport equipment manufacturers, including carmakers, suffered a 5.3 percent fall in output, the second straight monthly loss, as production of vehicles destined for overseas markets slowed.
Passenger car production hit the brakes as exports to the Americas shrank. Subcompact cars, mainly destined for Africa and Latin America, underlined a weaker note.
Production in the general machinery industry, including the makers of machines for manufacturing semiconductors and flat-panel television displays, posted a 3.5 percent fall.
Immune from the downward trend, however, the information and communications equipment industry expanded output by 1.1 percent as new lineups of mobile phones arrived in the market. Technology companies boosted their TV production, expecting replacement demand ahead of the summer Olympic Games in Beijing in August.
The index of overall industrial shipments fell 3.0 percent to 106.9, while that of industrial inventories gained 1.2 percent to 106.0.
In the April-June period, Japan's industrial output fell 0.7 percent from the previous quarter, marking a second consecutive quarterly decline for the first time since the government adopted the 2005 base year. Output declined 0.7 percent in the previous three months.
Yasukazu Shimizu, senior economist at Mizuho Securities Co., said the chances of the Japanese economy falling into a recession are increasing.
''In the past, there has been no case that the economy did not recede after seeing an industrial output decline for the second quarter running.''Looking ahead, the ministry said production by manufacturers, the key component in the survey, is expected to decrease 0.2 percent in July and 0.6 percent in August.
''We are going to closely look into developments in the North American economy,'' a ministry official said, as the outlook for Japanese exports to the United States is now one of the chief concerns.
''While rising energy and raw material costs have hit companies' profits, we also care about the conditions of inventories at manufacturers,'' the official said.
