According to the Ministry of Economy, Trade and Industry (METI), the index of production at factories and mines stood at 95.2 on a seasonally adjusted basis, against the 2015 base of 100.
The latest reading comes on the heels of a 1.0 percent decline in December, the ministry's data showed.
Despite the decline in factory output in the recording month, however, METI retained its assessment of the data for the third straight month. The ministry said that output at factories and mines "is showing signs of an upward movement."
According to the ministry's data, industries that mainly contributed to the decrease in production in the recording period were motor vehicles, iron, steel and non-ferrous metals and inorganic and organic chemicals, in that order.
Output in the auto industry dropped the most, diving 17.2 percent, as the rapid spread of the highly-contagious Omicron variant of the coronavirus Japan-wide caused factories to be suspended and rattled supply chains, a ministry official was quoted as saying.
As for organic and inorganic chemicals, output dropped 3.8 percent as the pandemic and a large earthquake in southwestern Japan also forced some plants to temporarily shutter operations in the reporting month.
The ministry said, meanwhile, that industries helping to trim losses by their output gaining in the recording period, included electronic parts and devices, production machinery, chemicals (excluding inorganic, organic chemicals, and medicine), in that order.
Looking ahead, the ministry official said that both "the COVID-linked situation and the ongoing conflict in Ukraine is likely to affect output."
As for other components in the reporting month, METI said the index of industrial shipments dropped 1.8 percent to 93.7 while that of inventories fell 1.8 percent at 99.0.
The ministry also said it predicts that output will rise 5.7 percent in February and inch up 0.1 percent in March, with its forecast based on a poll of manufacturers.
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