Drop in Japan Feb production points to slowing local demand

Tokyo

JAPAN'S industrial output fell in February at the fastest pace in eight months due to declines in production of machinery, cars and electronics in a worrying sign that domestic demand could be faltering.

Economists were already braced for a fall as many companies were expected to trim output due to the timing of Chinese New Year holidays, but the 3.4 per cent month-on-month decline in February was much worse than expected at almost double the median estimate for a 1.8 per cent fall.