Japan’s factory output plunges

Car manufacturing unitJapanese automakers have been working at reduced capacity after the quake and tsunami
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Japan’s industrial output fell by record levels in March as disruptions in the supply chain continued to hit production.

Factory output fell by 15.3%, the biggest ever decline in production in the country.

The previous record was an 8.6% fall in February 2009 in the wake of the global financial crisis.

Japanese manufacturers have been hit by a shortage of parts in the aftermath of last month’s earthquake and tsunami.

There has also been a shortfall in electricity supply in some parts due to the damage caused to power stations by the quake and tsunami.

The combination of those two factors has resulted in production being suspended or curbed at factories of some of Japan’s biggest manufacturers.

Analysts say the situation is unlikely to return to normal any time soon.

“Industrial output may not return to where it was before the earthquake until October-December,” said Kiichi Murashima of Citigroup Global Markets.

“Companies have forecast a rise in output in the April and May, but I doubt companies can accurately forecast how soon supply chains will be restored,” he added.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

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