The nation's industrial production fell 1.4 percent in 2002, after a 7.8 percent decline in 2001, as signs of improvement in the early part of the year faded, the Ministry of Economy, Trade and Industry said in a preliminary report Wednesday.

The index of output at mines and factories registered 95.4 against the 1995 base of 100, its lowest since hitting 94.9 in 1988.

The second straight yearly fall came after signs of improvement that had appeared in early spring began to dwindle in fall, particularly in electric machinery, a METI official said.