Japan's industrial output in February fell 0.1 percent from the previous month for the second straight monthly drop, as automobile production continued to slide due to suspensions at Toyota Motor Corp. group companies amid safety test scandals, government data showed Friday.

The seasonally adjusted index of production at factories and mines stood at 97.9 against the 2020 base of 100, the Ministry of Economy, Trade and Industry said in a preliminary report. It followed a 6.7 percent decline in January.

The ministry retained its basic assessment from the previous month that industrial production "showed weakness while fluctuating indecisively."

A ministry official attributed the consecutive decline in overall production to disruptions in output at Toyota Motor group companies Daihatsu Motor Co. and Toyota Industries Corp. due to a series of data-rigging scandals, as well as the impact of a strong earthquake that hit central Japan on New Year's Day.

"While the effects of the scandals were factored in to some extent, parts supply conditions that had worsened since late January did not improve among some automakers," the official said.

"In addition, many manufacturers temporarily suspended their production lines due to heavy snowfall in early February," he added.

Of the 15 industrial sectors the survey covers, seven reported decreased production, with output in the automobile industry dropping 7.9 percent.

The output of production machinery decreased 3.2 percent, led by semiconductor manufacturing equipment due to slowing electronic parts exports to China, which celebrated its New Year holidays in the reporting month, the ministry said.

Eight sectors saw increases, led by chemicals and pulp and paper.

The index of industrial shipments dipped 0.4 percent to 96.2, while that of inventories rose 0.6 percent to 101.6 for the first increase in seven months.

Based on a poll of manufacturers, the ministry expects output to increase 4.9 percent in March and to go up 3.3 percent in April.

The ministry official said the positive outlook reflects a resurgence in production after Toyota Motor fully restarted its domestic operations early this month for the first time since experiencing a partial shutdown in late January.

==Kyodo

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