Japan's processing plant yield posts greatest fall in 8 months on feeble automobiles, chips areas

According to data released by the Japanese government on Tuesday, factory output in January 2023 fell by 2.2% from the previous month, which is worse than economists' forecasted decline of 1.2%. This is the largest fall in factory output since May 2022.

The weak performance of the automotive and semiconductor sectors has been attributed to the supply chain disruptions caused by the ongoing pandemic and global chip shortage. The automotive sector, in particular, has been hit hard due to a shortage of semiconductor chips, which are used in cars for various functions, including engine management, infotainment systems, and driver assistance features.

The drop in factory output could also have an impact on Japan's economic recovery, which has been hindered by a resurgence of COVID-19 cases and supply chain disruptions. The Japanese government has recently announced a new round of economic stimulus measures to support businesses and individuals affected by the pandemic.