TOKYO, June 30 (Xinhua) -- Japan's industrial output in May saw the sharpest decline in two years by sliding 7.2 percent from last month, as the auto industry was hit by COVID-19-related supply chain disruptions, the government said in a report on Thursday.
According to the Ministry of Economy, Trade and Industry, the seasonally adjusted index of production at factories and mines stood at 88.3 against the 2015 base of 100, with the decline coming on the heels of a 1.5-percent retreat logged in April.
Owing to the steep decline and the sharpest drop since May 2020, the ministry opted to downgrade its basic assessment of industrial production for the second consecutive month to "weakening."
This compares to April's view that the nation's factory output was "pausing."
The government's survey revealed that 13 out of the 15 applicable industries saw output drop in the recording period. It showed specifically that automobile output slumped 8.0 percent from a month earlier, with truck production in the period tumbling 33.2 percent.
Electronic component production dropped 11.3 percent and output of construction and production machinery was down 5.1 percent, according to the ministry's data.
The index of industrial shipments fell 4.3 percent to 89.0, while that of inventories edged down 0.1 percent at 98.5, marking the third successive month of decline, the data showed.
"We will continue to closely watch the effects of the development of coronavirus infections for domestic and overseas economies, shortages of parts, rising prices and the situation of Ukraine," a ministry official was quoted as saying.
The ministry said that based on its poll of manufacturers, it forecasts production to increase 12.0 percent in June and in July it expects output to rise 2.5 percent.
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