Subaru cars are parked to wait for export at Kawasaki port, near Tokyo, on Sept. 7, 2021. (AP Photo/Koji Sasahara)

       TOKYO (Kyodo) -- Japan's industrial output in August fell 3.2 percent from the previous month on weak auto production amid a global chip shortage and disruption in supply chains, government data showed Thursday, with its basic assessment revised down for the first time in 16 months.

       The Ministry of Economy, Trade and Industry said the recovery in industrial production "has paused" compared with the view upheld from August last year through July that output is "picking up." It is the first downgrade of the assessment since April 2020.

       The seasonally adjusted index of production at factories and mines stood at 95.0 against the 2015 base of 100, down for the second straight month, the ministry said in a preliminary report.

       Production in the auto industry fell 15.2 percent from the previous month, affected by the global semiconductor shortage as well as factory shutdowns in Southeast Asia amid the spread of COVID-19 that disrupted supply of auto components, a ministry official said.

       Output of electrical machinery and information and communication electronics equipment, such as laptop computers, was also down 10.6 percent due to the crunch in chip and other component supplies.

       "The auto industry looks set to face harsh headwinds for months to come," said Shunsuke Kobayashi, chief economist at the equity research department of Mizuho Securities Co.

       The slower pace of the economic reopening in Japan compared to other developed countries, weak exports due to the impact of the virus situation in Asia, as well as being forced to halt production lines are a "triple woe" for automakers, Kobayashi added.

       The index of industrial shipments dropped 3.8 percent to 92.7 while that of inventories was down 0.3 percent at 94.7.

       Based on a poll of manufacturers, the ministry expects output to edge up 0.2 percent in September and rise 6.8 percent in October.

       However, the ministry official said the outlook may not fully reflect the pandemic situation and its effect on parts procurement. Major automakers Toyota Motor Corp. and Honda Motor Co. have announced plans to keep curbing their output in September and beyond.

       "We must continue to pay close attention as such downside risks could become evident," the official said.

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