Japan Industrial Output Falls at Fastest Pace

Tokyo, Jan. 30 (Jiji Press)--Japan's industrial production dropped at its steepest pace in December as exporters, particularly automakers and chipmakers, were hit hard by the global economic downturn, government data showed Friday.

The seasonally adjusted production index for the manufacturing and
mining sectors fell 9.6 pct from the previous month, the largest drop since
the survey started in February 1953, the Ministry of Economy, Trade and
Industry said in a preliminary report.
Output fell in all sectors for the first time since March 1998.
Economic and Fiscal Policy Minister Kaoru Yosano told a news
conference that such a sharp output fall has never been seen before and that
the fall is likely to continue.
Manufacturers expect production to fall 9.1 pct in January and 4.7
pct in February, the ministry said.
The forecast means that output will contract for the fifth straight
quarter in the January-March period following an 11.9 pct decline in
October-December and a 1.3 pct fall in July-September.
It is difficult to foresee how much corporate production plans will
be revised downward, a ministry official said.
The shipment index fell 8.0 pct, marking the second largest fall on
record. The inventory index gained 0.1 pct, the fourth consecutive month of
increase.