Japan's factory production fell in February in its first decline in three months, the government said Friday, as demand for exports weakened, despite signs of modest improvements in employment and consumer confidence.
The 1.2 percent decline in industrial output in the world's third-largest economy was worse than expected and reflected lagging output in the transport equipment, electronics components and machinery industries. Output of cell phones, large passenger cars and liquid crystal devices also weakened, the government said.
The devastating tsunami in March of last year — and a shift of manufacturing overseas to cut costs and reduce damage caused by the strong yen — plunged Japan's trade account into the red in 2011 for the first time since 1980.
Slowing growth in powerhouse China, the debt crisis in Europe and continued frailty in the U.S. economy have bit into demand for exports, which remain the strongest driver of growth for Japan.
The 1.2 percent decline in industrial output in the world's third-largest economy was worse than expected and reflected lagging output in the transport equipment, electronics components and machinery industries. Output of cell phones, large passenger cars and liquid crystal devices also weakened, the government said.
The devastating tsunami in March of last year — and a shift of manufacturing overseas to cut costs and reduce damage caused by the strong yen — plunged Japan's trade account into the red in 2011 for the first time since 1980.
Slowing growth in powerhouse China, the debt crisis in Europe and continued frailty in the U.S. economy have bit into demand for exports, which remain the strongest driver of growth for Japan.
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