Japan’s factory output shrank for a third straight month in November as cooling demand overseas pushed production levels further below pre-pandemic levels.
Industrial production edged down 0.1% from October, dragged lower by falls in output of conveyor belts, cranes and equipment for making chips and flat panel displays, according to data released by the industry ministry on Wednesday. Economists had forecast a 0.2% decline. Output also fell 1.3% from a year ago, compared with analysts’ expectations of a 1.5% drop.
The continued weakness in output supports the Bank of Japan’s view that the economy’s fragile recovery is still in need of support. Japanese firms, especially manufacturers, are growing increasingly cautious over the outlook as uncertainty builds over the extent of a global slowdown and the possibility of recessions in key overseas markets.