Japanese Economy had Fallen Sharply
| Tweet |
|
Japanese industrial output fell in March, when disturbances in the supply chain continues to hit production.
Results factories fell 15.3%, the biggest drop in production in the country.
The previous record was the 8.6% decline in February 2009 after the global financial crisis.
Following these figures, the Bank of Japan left interest rates unchanged in a bid to encourage growth.
BOJ has kept borrowing costs to be at a low level of between zero to 0.1% as the country struggled to recover from the earthquake and tsunami last month.
The biggest impact of the dual disasters were perceived by the supply chain infrastructure and Japan.
That resulted in Japan's manufacturing blow by the crisis of major components and spare parts.
There is also a crisis of power supply in some areas due to damage sustained by the power plant due to the earthquake and tsunami.
The combination of two factors that cause the termination or limitation of production in factories in some of Japan's largest manufacturers.
Analysts said the situation was most likely not be back to normal in the near future.
"The industry might not come back like before the earthquake until the month of October to December," said Kiichi Murashima of Citigroup Global Markets.
"The company had predicted an increase results in April and May, but I doubt the company can predict with accuracy how fast the supply chain will recover," he added.
While the damage by the earthquake and tsunami on the economy and infrastructure of Japan has spread, the country's car manufacturers to be one of the hardest hit.
The automaker did not bring enough spare parts with them.
Industries that rely heavily on the effective functioning of their supply chain to ensure spare parts delivered on time for use in the assembly.
As a result, supply chain disruption experienced by Japan has suspended the country's automotive sector in an emergency.
Toyota Motors and Honda have reported that their production fell 63% in March, while Mazda's production declined 54%.
Analysts said the recovery in Japan's industrial output will depend on how quickly the automotive sector could return
Posted by Anggo82
on Monday, May 30, 2011. Filed under