ID :
48097
Fri, 02/27/2009 - 22:34
Auther :
Shortlink :
https://oananews.org//node/48097
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Japanese industrial output falls record 10% in Jan.+
TOKYO, Feb. 27 Kyodo - Japanese industrial production fell a seasonally adjusted 10.0 percent in January from the previous month, shrinking at a record pace for the third straight month, amid sluggish exports and domestic demand, the government said Friday.
The unprecedented slump was marked as the global economic downturn took a toll
on nearly all industries, not only those highly dependent on overseas markets,
industry ministry officials said.
The index of output at mines and factories stood at 76.0 against the base of
100 for 2005, the Ministry of Economy, Trade and Industry said in a preliminary
report. Output diminished for the fourth straight month, the longest under the
current base year.
The headline reading compares with a fall of 9.9 percent projected on average
by economists Kyodo News surveyed.
A 17.3 percent dive in production in the transport equipment sector, including
cars and trucks, dealt the heaviest blow to the overall output retreat, the
officials said.
All 16 industrial sectors subject to the ministry's analysis cut their output,
with electronic parts and devices, down 21.8 percent from the previous month,
seeing the second-largest negative impact on the index, followed by general
machinery and steel.
The ministry said production of Japanese manufacturers is ''rapidly
declining,'' using the same expression in its overall assessment for the third
straight month.
The index of shipments fell 11.4 percent to 76.1 and that of inventories
decreased 2.0 percent to 108.3.
Some analysts said Japanese factory output may soon touch bottom.
Coupled with accelerated production cuts, inventories declined for the first
time in five months. The 2.0 percent shrinkage was the largest since February
2003, when it registered a reduction of 2.5 percent, according to the ministry.
''Amid gloomy news everyday, the inventory reduction was a positive thing that
was found,'' said Kyohei Morita, chief economist at Barclays Capital Japan Ltd.
Although inventories are still accumulating in distributive stages, at
production levels, they are apparently becoming smaller at a fast pace partly
because business owners this time have swiftly idled workers, refraining from
making unnecessary products, unlike during the prolonged slump of the 1990s,
Morita said.
Inventories of electronics and device manufactures dropped 13.7 percent and
those of communication and information electronics equipment makers contracted
11.9 percent. But inventories of automakers widened 2.1 percent.
Looking ahead, the ministry said output from manufacturers is expected to
shrink 8.3 percent in February but rise 2.8 percent in March.
Big output growth is anticipated in factories of transport equipment,
electrical machinery, pulp and paper, and electronic parts and devices.
The transport equipment sector is projected to have an output rise of 6.2
percent in March.
Still, Morita and some other economists warned against taking the projections
at face value.
''It should be noted that a possible rise in output is not resulting from a
pickup in the economy,'' Morita said.
==Kyodo
2009-02-27 22:59:13
The unprecedented slump was marked as the global economic downturn took a toll
on nearly all industries, not only those highly dependent on overseas markets,
industry ministry officials said.
The index of output at mines and factories stood at 76.0 against the base of
100 for 2005, the Ministry of Economy, Trade and Industry said in a preliminary
report. Output diminished for the fourth straight month, the longest under the
current base year.
The headline reading compares with a fall of 9.9 percent projected on average
by economists Kyodo News surveyed.
A 17.3 percent dive in production in the transport equipment sector, including
cars and trucks, dealt the heaviest blow to the overall output retreat, the
officials said.
All 16 industrial sectors subject to the ministry's analysis cut their output,
with electronic parts and devices, down 21.8 percent from the previous month,
seeing the second-largest negative impact on the index, followed by general
machinery and steel.
The ministry said production of Japanese manufacturers is ''rapidly
declining,'' using the same expression in its overall assessment for the third
straight month.
The index of shipments fell 11.4 percent to 76.1 and that of inventories
decreased 2.0 percent to 108.3.
Some analysts said Japanese factory output may soon touch bottom.
Coupled with accelerated production cuts, inventories declined for the first
time in five months. The 2.0 percent shrinkage was the largest since February
2003, when it registered a reduction of 2.5 percent, according to the ministry.
''Amid gloomy news everyday, the inventory reduction was a positive thing that
was found,'' said Kyohei Morita, chief economist at Barclays Capital Japan Ltd.
Although inventories are still accumulating in distributive stages, at
production levels, they are apparently becoming smaller at a fast pace partly
because business owners this time have swiftly idled workers, refraining from
making unnecessary products, unlike during the prolonged slump of the 1990s,
Morita said.
Inventories of electronics and device manufactures dropped 13.7 percent and
those of communication and information electronics equipment makers contracted
11.9 percent. But inventories of automakers widened 2.1 percent.
Looking ahead, the ministry said output from manufacturers is expected to
shrink 8.3 percent in February but rise 2.8 percent in March.
Big output growth is anticipated in factories of transport equipment,
electrical machinery, pulp and paper, and electronic parts and devices.
The transport equipment sector is projected to have an output rise of 6.2
percent in March.
Still, Morita and some other economists warned against taking the projections
at face value.
''It should be noted that a possible rise in output is not resulting from a
pickup in the economy,'' Morita said.
==Kyodo
2009-02-27 22:59:13
