The Strategist

Japanese government downgrades industrial production outlook



06/20/2022 - 12:03



In June, the Japanese government lowered its industrial production outlook for the first time in seven months due to the negative impact of China's quarantine measures.



Terry Feuerborn
Terry Feuerborn
Strict lockdowns in Chinese cities have had a strong negative impact on output by Japanese manufacturers as a result of disruptions in the supply of components and weakened demand in the Chinese economy for memory cards and sensors. Due to the detrimental impact of China's quarantine restrictions, the Japanese government decreased its industrial production projection for the first time in seven months in June.

As a result of disruptions in component supply and diminished demand in the Chinese economy for memory cards and sensors, strict lockdowns in Chinese cities have had a significant detrimental impact on Japanese manufacturers' output.

The industrial recovery appears to have stopped, according to a monthly government report issued on Monday.

Although Shanghai's citywide lockdown was lifted in early June, Japanese firms are concerned about China's economic rebound.

The government kept the forecast for the economy as a whole unchanged after downgrading the outlook for manufacturing, while emphasizing that significant risks persist.

source: asia.nikkei.com

 




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