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▼ April Factory Output In Japan Falls 0.1% On Aircraft, Car Weakness
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Japan's industrial output in April fell 0.1 percent from the previous month, weighed down by a decrease in production of airplane parts as well as cars amid a Toyota Motor Corp. worldwide recall, government data showed Friday.
The seasonally-adjusted index of production at factories and mines stood at 101.6 against the 2020 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report. It followed a 4.4 percent rise in March.
The first decrease in two months came on the heels of a surge in production of airplane engine parts the previous month as manufacturers ramped up output to meet demand, improving their earnings for their fiscal year ended March, according to the ministry.
Production of airplane body parts was also lower as demand was hit by the recent safety scandal involving Boeing Co.'s aircraft, the ministry said.
The auto industry also contributed to the overall decrease. Toyota suspended production of the Prius hybrid car in early April after finding a door defect, resulting in a worldwide recall.
Domestic output at Daihatsu Motor Co., which completely stopped production in December due to revelations about data rigging, is still recovering from the safety scandal.
Meanwhile, the output of chip production equipment rose as demand in Taiwan and China strengthened. Metal products also enjoyed a rise in production as delivery timings fell within the month.
The ministry retained its basic assessment from the previous month that industrial production "showed weakness while fluctuating indecisively."
"We are seeing repeated rises and falls in the production figure.
We will closely monitor the direction of the world economy, as well as that of our auto industry," where production is on its way to full recovery, a ministry official said.
Of the 15 industrial sectors the survey covers, seven logged lower output while eight saw increases.
The index of industrial shipments increased 0.2 percent to 100.6, while that of inventories fell 0.5 percent to 102.1.
Based on a poll of manufacturers, the ministry expects output to increase 6.9 percent in May but decrease 5.6 percent in June.
While production is trending upwards overall due to an ongoing recovery in auto production, a delay in delivery dates for semiconductor production equipment will cause the figure to fall in June, the ministry said.
The seasonally-adjusted index of production at factories and mines stood at 101.6 against the 2020 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report. It followed a 4.4 percent rise in March.
The first decrease in two months came on the heels of a surge in production of airplane engine parts the previous month as manufacturers ramped up output to meet demand, improving their earnings for their fiscal year ended March, according to the ministry.
Production of airplane body parts was also lower as demand was hit by the recent safety scandal involving Boeing Co.'s aircraft, the ministry said.
The auto industry also contributed to the overall decrease. Toyota suspended production of the Prius hybrid car in early April after finding a door defect, resulting in a worldwide recall.
Domestic output at Daihatsu Motor Co., which completely stopped production in December due to revelations about data rigging, is still recovering from the safety scandal.
Meanwhile, the output of chip production equipment rose as demand in Taiwan and China strengthened. Metal products also enjoyed a rise in production as delivery timings fell within the month.
The ministry retained its basic assessment from the previous month that industrial production "showed weakness while fluctuating indecisively."
"We are seeing repeated rises and falls in the production figure.
We will closely monitor the direction of the world economy, as well as that of our auto industry," where production is on its way to full recovery, a ministry official said.
Of the 15 industrial sectors the survey covers, seven logged lower output while eight saw increases.
The index of industrial shipments increased 0.2 percent to 100.6, while that of inventories fell 0.5 percent to 102.1.
Based on a poll of manufacturers, the ministry expects output to increase 6.9 percent in May but decrease 5.6 percent in June.
While production is trending upwards overall due to an ongoing recovery in auto production, a delay in delivery dates for semiconductor production equipment will cause the figure to fall in June, the ministry said.
- May 31, 2024
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