Japan August Industrial Production Down 3.2% Month-on-Month... Forecast -0.5% (Update)

"Industrial Production Outlook Downgraded to 'Sideways'"

[Image source=AP Yonhap News]

[Asia Economy Reporter Kim Suhwan] Japan's industrial production in August fell by 3.2% compared to the previous month. The main cause is analyzed to be the sharp decline in automobile and electronic machinery production in Japan due to the ongoing semiconductor supply shortage.

On the 30th, Japan's Ministry of Economy, Trade and Industry announced that Japan's industrial production in August fell 3.2% from the previous month. This figure is a larger drop than the market expectation of a 0.5% decline.

This marks the second consecutive month of decline compared to the previous month.

Specifically, automobile production sharply decreased by 15.2% compared to the previous month, leading the contraction in industrial production.

Recently, the rapid spread of the Delta variant in the Southeast Asia region has made raw material procurement more difficult, which also affected the reduction in industrial production.

The Ministry of Economy, Trade and Industry downgraded its previous industrial production forecast, which expected an upward turn, and assessed that it will remain flat.

Japan's retail sales in August fell 3.2% compared to the previous month, a larger drop than the forecasted 1% decline.

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