The Industrial Production Index for August, released by the Ministry of Economy, Trade and Industry, fell 1.7% month on month. Automobile production cuts led to a second consecutive monthly decline, although factors other than earthquakes and typhoons have also been cited.
The Industrial Production Index for August fell 1.7% month on month, with 100 as the base under the 2020 standard, marking a second consecutive monthly decline. The market consensus from private-sector forecasts was for a 1.7% increase, but the actual result was a decline. The drop in production cannot be explained solely by shutdowns caused by the earthquake, and a METI official said that production falling short of plan was also a factor.
Total automobile production fell 6.8% month on month. Standard passenger cars fell 5.7% and compact passenger cars fell 17.3%, among other factors. The effects of the earthquake and typhoon were evident, with production of conveyor and petrol-related parts also declining. Production of moulds and aircraft engine parts, however, increased.
Looking ahead, the forecast indicators based on companies’ production plans point to a 3.2% month-on-month increase in September and a 3.1% increase in October. The latest decline was attributed not only to natural disasters but also to deviations from production plans.