Japan's industrial output down 5.4 pct in September

Japan's industrial output in September dropped 5.4 percent from the previous month, logging the lowest level in 13 months, as a semiconductor shortage and supply chain disruptions in Southeast Asia led to sharp decline of auto production, government data showed Friday.

The Japanese Ministry of Economy, Trade, and Industry said in a preliminary report that the seasonally adjusted index of production at factories and mines decreased to 89.5 against the 2015 base of 100, falling three months in a row.

The ministry kept its basic assessment from the previous month, saying the recovery in industrial production "has paused," after downgrading the evaluation to "picking up" in August.

Production in the auto industry slumped 28.2 percent from the previous month, decreasing for the third straight month and marking its biggest drop since April 2020, dragged down by the global chip shortage and disruption of parts supply from Southeast Asia due to restrictions on economic activities under COVID-19 pandemic, a ministry official said.

The output of general-purpose and business-oriented machinery, such as conveyors and compression machines, dropped 5.7 percent in reporting month, down for the third consecutive month, as delivery dates were postponed for some makers.

The index of industrial shipments decreased by 6.2 percent to 86.5, and that of inventories rose 3.7 percent to 98.4.

Looking ahead, the output of manufacturers investigated by the ministry is expected to rise 6.4 percent in October and 5.7 percent in November.

"Output may have hit bottom in September since economic activities have been returning to normal in countries such as Vietnam and Malaysia since late September, and a recovery is expected, mainly in the auto industry," the official said.