Tokyo, 4 May, /AJMEDIA/
Japan’s industrial output fell 1.6 percent in fiscal 2024 from the previous year, down for the third straight year, due in part to a decline in car production following a quality scandal, according to government data.
The index of production at factories and mines in the year ended March stood at 101.3 against the 2020 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report.
The annual index of industrial shipments dropped 2.0 percent to 100.0, while that of inventories slid 1.0 percent to 98.6.
The output decrease came as automakers were forced to reduce production in the fiscal year following an industry-wide quality scandal, with the index for the car industry falling 3.1 percent, the first decrease in three years, according to the ministry.
Toyota Motor Corp and Mazda Motor Corp were among the manufacturers that briefly halted some production after they admitted they were not fully following government standards in vehicle safety tests.
Output in steel and general-purpose machinery also fell, among other products.
The country’s industrial output in March fell a seasonally adjusted 1.1 percent from a month earlier to 101.1, weighed down by a fall in car and electronic device production, the ministry said. It followed a 2.3 percent rise in February.
The index of industrial shipments decreased 2.8 percent to 98.7, while inventories grew 0.9 percent to 101.8.
Of the 15 industrial sectors the survey covers, 10 reported a fall in output, with production in the automobile industry dropping 5.9 percent. Five sectors saw output growth.
Based on a poll of manufacturers, the ministry expects output to increase by 1.3 percent in April and 3.9 percent in May.