TOKYO: Japan’s factory output has fallen as the war in Iran clouds prospects for global demand while also threatening manufacturers’ margins by way of higher energy costs.
Industrial production dropped 0.5% in March from the previous month, the Industry Ministry reported yesterday. Economists had expected a 1.1% increase.
Output gained 2.3% from a year earlier, compared with expectations of a 2.2% gain. Yesterday’s report reflects a period in flux, with business prospects for manufacturers starting to dim as the impact of the Middle East conflict rippled through the world’s economy.
Earlier this month, the International Monetary Fund said the global outlook “has abruptly darkened following the outbreak of war in the Middle East”.
It trimmed its 2026 global growth forecast to 3.1%.
Output of general-purpose and industrial machinery fell, along with production in the petroleum and coal products industry.
It was the second straight month in which overall output declined, although the quarterly figure saw an increase after a strong result in January. — Bloomberg
