Japan’s Output Falls as Supply Snags Add to Contraction Risk
- Automakers drag on overall industrial production in January
- Retail sales drop also points to greater weakness in economy
An employee assembles a module at a battery plant in Fukui Prefecture.
Photographer: Kiyoshi Ota/BloombergThis article is for subscribers only.
Japan’s factory output fell for a second straight month in January as supply shortages continued to hurt manufacturers, adding to concern that the economy could shrink this quarter as omicron restrictions weigh on activity and the Russian invasion of Ukraine clouds the outlook.
Production slipped 1.3% from the previous month, with falls at automakers and iron and steel manufacturers making the biggest contributions to the drop and driving output below year-earlier levels, according to the industry ministry Monday. Economists had expected a decline of 0.7%.