Crude steel production in December plunged 27.9 percent from a year earlier to 7.48 million tons, posting the steepest fall since comparable data became available in January 1949, an industry body said Wednesday.

The nation's steel output shrank for the third consecutive month against the backdrop of declining demand for automobiles amid the worsening economy, the Japan Iron and Steel Federation said.

Steelmakers are stepping up production cuts as steel demand for housing and electric products is also on the decrease, the federation said.