Data released by the Japanese government on Thursday showed that industrial output fell 3.2% in August from the previous month, the second consecutive month of decline, and the decline far exceeded market expectations, mainly due to a decline in production of cars and electronic machinery.
Japanese industrial output fell for the second month in a row in August as the COVID-19 epidemic in other parts of Asia disrupted the supply chain of carmakers already facing the adverse effects of chronic chip shortages.
Due to the shortage of spare parts, Toyota and NissanMajor Japanese carmakers, such as Honda, have been facing production cuts since the end of August, and the impact is likely to last until October.
The Japanese government downgraded its assessment of industrial production for the first time since April 2020, saying it was "stagnant".