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Japan's industrial production continues to suffer Japan's industrial production continues to suffer
(40 minutes later)
Japan's industrial output continues to be battered by the after effects of the earthquake and tsunami.Japan's industrial output continues to be battered by the after effects of the earthquake and tsunami.
Factory output in Japan was down by 14.0% in April compared with the same month a year ago, the latest government data showed. Factory output was down by 14.0% in April compared with the same month a year ago, the latest government data shows.
This follows a record 15.3% plunge in March.This follows a record 15.3% plunge in March.
However, compared with the previous month, industrial production rose by 1%, indicating that conditions may be improving slowly. However compared with the previous month, industrial production rose by 1%, indicating that conditions may be improving slowly.
Japanese manufacturers have been hit hard by disruption to the country's supply chain due the destruction caused by the 11 March earthquake and tsunami.
A shortfall in the supply of parts and power cuts has seen many factories suspend or curb production.
'Biggest factor'
One of the hardest hit sectors has been Japanese car manufacturing.
Carmakers usually do not stockpile a large inventory of parts, so when the earthquake and tsunami damaged supply chains, car makers in Japan had to suspend production.
Earlier this week Toyota Motors said production at its Japanese factories was down by 74.5% in April compared to last year.
Honda reported a decline of 81%, while Nissan said its domestic factories produced 48.7% fewer cars in April.
Analysts say a rebound in car manufacturing is key for Japan's factory output to get back to pre-quake levels.
"The forecasts are for big rises (in industrial output) in May and June," said Yoshimasa Maruyama of Itochu Economic Research Institute.
"The biggest factor here is the auto industry. It's factoring in a greatly improved outlook for car production," he added.