Japanese factory production plunges 4%
Source: Agencies |
October 29, 2011, Saturday
|
Print Edition
Print Edition
JAPAN'S factory production fell for the first time in six months in September as the export-reliant country grappled with a strong yen and global economic turmoil.
The government yesterday said factory output fell 4 percent from the previous month as manufacturers produced fewer cars, chip-related machines and cell phones. The result was worse than market expectations for a mild decline.
The Ministry of Economy, Trade and Industry described industrial production as "flat," suggesting that Japan's recovery from the March 11 earthquake and tsunami is tapering off in the face of new economic worries.
A strong yen is battering exporters, whose overseas earnings shrink in value as the Japanese currency climbs. Some companies are shifting production abroad as a result, and officials worry openly about a hollowing out of Japanese industry.
The dollar hit a record low against the Japanese currency for a third straight day in New York, dropping to 75.63 yen at one point. That led Finance Minister Jun Azumi to warn of possible foreign exchange intervention. He reiterated his belief that speculators are behind the yen's rise and said currency levels should "reflect the real economy."
"We will closely watch the Tokyo market," Azumi told reporters in Tokyo, adding that officials will "take decisive action when it proves necessary" to combat speculators.
The government projected industrial production to rebound in the fourth quarter. The government's survey pointed to an output expansion of 2.3 percent in October and 1.8 percent in November.
The government yesterday said factory output fell 4 percent from the previous month as manufacturers produced fewer cars, chip-related machines and cell phones. The result was worse than market expectations for a mild decline.
The Ministry of Economy, Trade and Industry described industrial production as "flat," suggesting that Japan's recovery from the March 11 earthquake and tsunami is tapering off in the face of new economic worries.
A strong yen is battering exporters, whose overseas earnings shrink in value as the Japanese currency climbs. Some companies are shifting production abroad as a result, and officials worry openly about a hollowing out of Japanese industry.
The dollar hit a record low against the Japanese currency for a third straight day in New York, dropping to 75.63 yen at one point. That led Finance Minister Jun Azumi to warn of possible foreign exchange intervention. He reiterated his belief that speculators are behind the yen's rise and said currency levels should "reflect the real economy."
"We will closely watch the Tokyo market," Azumi told reporters in Tokyo, adding that officials will "take decisive action when it proves necessary" to combat speculators.
The government projected industrial production to rebound in the fourth quarter. The government's survey pointed to an output expansion of 2.3 percent in October and 1.8 percent in November.
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