Factory production in January fell at twice the pace economists predicted as a deepening U.S. slump weakened demand for cars and electronics.

Companies cut output 2 percent from December, when it rose 1.4 percent, the Ministry of Economy, Trade and Industry said Thursday. The median estimate of 47 economists surveyed by Bloomberg News was for a 0.8 percent decline.

The report suggests the U.S. slowdown may be taking its toll on the emerging markets where Japan ships more than half its exports. A separate survey showed retail sales rose 1.5 percent in January from a year earlier, although the gain was driven by higher gasoline prices.