Collapse in demand in the auto industry drove growth
The global lockdown measures as a result of increasing corona infections are causing Japanese industry to stagnate. Production in December remained at the level of the same month last year, according to the official data published on Monday. Economists had expected an increase of 1.2 percent compared to the previous month.
“The pace of recovery is slowing a little more than expected,” said Takumi Tsunoda, chief economist at Shinkin Central Bank Research Institute. According to government data, machine builders boosted production, but the collapse in demand in the automotive industry put pressure on growth.
Separate data had previously shown that December consumer prices saw their sharpest drop in more than a decade.
