(Update) Japan Industrial Output Logs Steepest Fall in 20 Months

Tokyo, Nov. 30 (Jiji Press)--Industrial production in Japan
registered the steepest drop in 20 months in October as automakers cut
output following the termination of the government's subsidy program for
eco-friendly vehicles in September, government data showed Tuesday.
The seasonally adjusted production index for the manufacturing and
mining sectors was down 1.8 pct month on month at 91.1, against 100 for the
base year of 2005, the Ministry of Economy, Trade and Industry said. The
size of drop was the biggest since the 8.6 pct plunge in February 2009.
The index fell for the fifth consecutive month in October.
The ministry kept its assessment unchanged, saying that industrial
production has been weakening.
Production of transport machinery dropped 10.0 pct reflecting the
slump in automobile production, while that of electronic components and
devices was down 3.2 pct.
Meanwhile, production of liquid crystal display television sets and
refrigerators increased as demand surged ahead of the scale-down in December
of the government's eco-point program designed to promote purchases of
energy-efficient home appliances.
The ministry also said that production at manufacturers is expected
to rise 1.4 pct month on month in November because there will be more
operating days at automakers. Production is seen growing 1.5 pct in
December.
But automakers appear to be believing that their business
conditions will remain severe for the time being, ministry officials said.
In October, the industrial shipment index fell 2.7 pct from the
previous month to 92.6 due to the reduced vehicle production.
The inventory index fell 1.5 pct to 96.1 on the back of strong
shipments of LCD TVs and personal computers.
END