Japan's May industrial output shrinks 5.9 pct amid global chip crunch

Source: Xinhua| 2021-06-30 15:40:48|Editor: huaxia

TOKYO, June 30 (Xinhua) -- Japan's industrial output in May decreased 5.9 percent compared to the previous month, dropping for the first time in three months, government statistics revealed Wednesday.

The drop occurred as vehicle makers and other manufacturers cut back on production amid a global chip shortage, according to government data.

The seasonally adjusted index of production at factories and mines stood at 94.1 against the 2015 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report.

The figure followed an upwardly revised 2.9-percent rise in April.

The 5.9 percent fall logged the sharpest plunge since a 10.5-percent plummet was marked in May last year when the Japanese economy was stricken hard by the government's first state of emergency over the COVID-19 pandemic.

In terms of industries, the vehicle sector dived 19.4 percent compared to the previous month following a 1.0-percent decline in April.

The global shortage of semiconductors for new cars forced automakers to reduce production, according to officials.

Output in the sectors of the electrical machinery and the information and communication electronics equipment decreased 4.5 percent, as manufacturing of lights for cars and air conditioners was also impacted by the semiconductor shortage.

In addition, the overall decline was cushioned partly by a 7.2-percent gain in transportation machinery except for cars, along with a 2.2-percent increase in chemical products. Enditem

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