Japanese output crumbles

A SLUMP in sales of cars and other big export items sent Japanese industrial output tumbling to a 14-year low in November, while sliding retail sales hold out the prospect of further economic gloom.

Industrial output fell 1.8% compared with October, as crumbling domestic sales and dwindling overseas demand forced manufacturers into a go-slow. Retail sales in November slid 2.7%, an eighth successive monthly drop.

The steeper-than-expected fall in output, seen as further evidence of an accelerating recession in Japan, was led by companies which have been hard hit by the fall in US consumer demand for cars and electronic goods due to the slowing economy there and fallout from the 11 September terror attacks.

Output at Toyota factories dropped almost 10% while production of Mazda and Mitsubishi vehicles fell around 15%. Only Nissan and Honda speeded up their production lines.

Leading makers of parts for electronic goods, such as NEC and Toshiba, reduced output, closed production lines or switched manufacturing to cheaper, overseas factories.

More bad news is anticipated tomorrow when unemployment figures for November are expected to show an increase from 5.4% to a record 5.5%.