Japan’s factory output slid sharply in May, as semiconductor shortages dented car production and manufacturers of all kinds pulled back amid yet another round of restrictions to contain the COVID-19 pandemic.
Industrial production plunged 5.9% from April’s level, the trade ministry reported Wednesday. The figures were several percentage points worse than even the most pessimistic forecast among 30 surveyed analysts, the median projection having been for a 2.1% drop.
Despite the worse-than-projected figures, the ministry stuck to its assessment that production is picking up. Manufacturers surveyed in the report said they plan to ramp up output this month by 9.1%, and economists said May’s output drop probably had more to do with supply constraints than a falloff in demand.