Japan’s factory output drops in September

Japan recorded a decline in its factory output for three consecutive months in September. The loss was attributed to the global supply shortage’s impact on the auto industry. The development was seen to result in an economic contraction in the third quarter.

The official data released on Friday showed that factory production dropped 5.4% in September from the previous month. A weak output of cars and general purpose-machinery contributed to its fall.

The latest figure was the largest month-on-month decline since a 6.5% plunge in May. Economists were expecting a smaller drop of 3.2%.

Factory output has been declining for three straight months after dropping 3.6% in August and 1.5% in July.

Seven out of eight Japanese automakers posted global output decline as a result of global parts and chip shortage.

Toyota Motor reported on Thursday that global output fell 39.1% in September compared to the same month a year ago.