Domestic mining and manufacturing output dropped 1.4 percent in December from the previous month, marking the first decline in two months, according to a preliminary report issued Friday by the Ministry of International Trade and Industry. Despite the monthly fall, the ministry upgraded its overall assessment of the nation's production activities. The report notes "overall industrial production is on a gradual upward trend," a phrase that the ministry says represents an upward revision from "improving," as was used in the previous report. The seasonally adjusted index of industrial production reached 101.6 against the benchmark of 100 points set in 1995. December's decline was attributed to a slump in such items as personal computers, automobiles and electronic toys as a reaction against an increase in November, the report says. But the ministry expects output to grow again this month and in February. The annual industrial production index for 1999 reached 98.9, up 0.4 percent from the previous year, following a 7.1 percent plunge in 1998, the report says. The seasonally adjusted shipment index for December came to 103.9, down 1.1 percent from the previous month and marking the first decrease in two months.