TOKYO (AFX-ASIA) - The Ministry of Economy, Trade and Industry said it cut its assessment of industrial production to a "softer tone" from the previous judgement of a "flat trend", after February data came in worse than expected.
"Industrial output is heading lower and we need to watch closely the future movement, amid an unclear outlook for personal consumption," a METI official said.
"Among factors pushing the data lower were personal computers, memory chips and information-technology related components," the official said.
PC production declined in February, after a strong rise the previous month on new product campaigns, while memory chip output was affected by slowing exports to the U.S.
"A worrying sign is that IT-related production dropped. For example, output of fine ceramics used for mobile phones fell, reflecting declines in orders from mobile phone makers," the official said.
The ministry said March industrial output will fall as production of capital goods used for plant and equipment investment is expected to slow due to a slew of delayed shipments and order cancellations. This is seen particularly in general machinery and IT-related electric machinery.
"As for the forecast for April, the index is expected to bounce back thanks to an increase in automobile production."