This May 18, 2021 photo taken from a Mainichi Shimbun helicopter shows skyscrapers in Tokyo's Marunouchi business district. (Mainichi)
TOKYO (Kyodo) -- Japan's industrial output in May fell 5.9 percent from the previous month, down for the first time in three months, as carmakers and other manufacturers cut back on production due to a global chip shortage, government data showed Wednesday.
The seasonally adjusted index of production at factories and mines stood at 94.1 against the 2015 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report. The result followed an upwardly revised 2.9 percent rise in April.
The 5.9 percent fall was the sharpest drop since a 10.5 percent dive was marked in May last year when the world's third-largest economy was hit hard by the government's first state of emergency over the coronavirus pandemic, declared the previous month.
By industry, the auto sector plunged 19.4 percent from the previous month following a 1.0 percent fall in April. The global shortage of semiconductors used in new cars forced automakers to cut production, a ministry official told reporters.
Output in the electrical machinery and the information and communication electronics equipment sector sank 4.5 percent, as manufacturing of lights for cars and air conditioners was also affected by the semiconductor shortage, according to the official.
Makers of machinery used in production, including chip-making equipment, slid 5.9 percent after a 7.7 percent boost in output in the previous month.
Meanwhile, the overall decline was cushioned partly by a 7.2 percent gain in transportation machinery except for cars, as well as a 2.2 percent increase in chemical products.
The ministry maintained its assessment of industrial output, saying it is "picking up."
Based on a poll of manufacturers, the ministry expects output to rise 9.1 percent in June and decline 1.4 percent in July.
"Recovery in demand for domestic and overseas capital investment is expected to continue," the official said, while warning of further fallout from the chip crunch and the economic impact of the spread of coronavirus variants.
The index of industrial shipments decreased 4.7 percent to 93.1 while that of inventories dropped 1.7 percent to 93.1.
Font Size S M L Print Timeline 0