Japanese industrial output in May dropped to its lowest level since the global financial crisis, underlining the deep impact of the coronavirus pandemic on factory productivity.
Japan’s Ministry of Economy, Trade and Industry data reported an 8.4% fall to 79.1 in factory output in May. The country is headed for its worst postwar recession.
May’s output slump followed a 9.8%-drop in the previous month and exceeded the median market forecast of a 5.6% decline.
On a positive note, manufacturers predict output to grow 5.7% in June and 9.2% in July.
However, the Japanese government did not revise its assessment of industrial production, stating that it was sharply declining. This assessment was the bleakest view since the 2008 financial crisis.