Factory production in January fell at twice the pace economists predicted as a deepening U.S. slump weakened demand for cars and electronics.
Companies cut output 2 percent from December, when it rose 1.4 percent, the Ministry of Economy, Trade and Industry said Thursday. The median estimate of 47 economists surveyed by Bloomberg News was for a 0.8 percent decline.
The report suggests the U.S. slowdown may be taking its toll on the emerging markets where Japan ships more than half its exports. A separate survey showed retail sales rose 1.5 percent in January from a year earlier, although the gain was driven by higher gasoline prices.
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