TOKYO (Businesshala) – Japan’s industrial output fell for a second straight month in August as the COVID-19 outbreak elsewhere in Asia disrupted supply chains for carmakers already reeling from prolonged chip shortages. were facing headwinds.
Separate data on Thursday showed retail sales in August slipped for the first time in six months as homes cut spending amid the coronavirus relapse, indicating a lack of consumer sentiment.
Data showed the pandemic continued to wreak havoc in Japan’s economy this quarter, posing an immediate challenge to the next prime minister, Fumio Kishida, who won the ruling party leadership vote on Wednesday.
Factory production fell by 3.2% in August compared to the previous month, according to official data shown Thursday, marking a second consecutive month of contraction after weak production of cars and electronic machines and a 1.5% drop in July .
The drop was bigger than economists forecast in a Businesshala poll of 0.5%.
Major Japanese automakers including Toyota Motor Corp, Nissan Motor Co and Honda Motor Co have faced production cuts since late August due to component shortages, which could have a lasting impact well into October, the industry lobby said. warned earlier this month.
Manufacturers surveyed by the government expect production to grow 0.2% in September and 6.8% in October.
The government downgraded its assessment of industrial production for the first time since April 2020, saying it was “stagnation”.
Analysts expect the world’s third-largest economy to grow at an annual pace of 1.2% this quarter, much weaker growth than other advanced economies, as the stop-go coronavirus reins in private consumption.
Separate government data on Thursday showed retail sales were weaker than expected, falling 3.2% in August from a year earlier.
This is the first drop in six months and was larger than the average market forecast for a 1.0% drop.
Higher-than-expected retail sales Japan said earlier this week that it would curb the coronavirus in all regions by Thursday, leading to a sharp drop in COVID-19 cases and fully immunizing nearly 60% of the population .
Compared to the previous month, retail sales declined 4.1% seasonally adjusted.