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- May output drops 7.2% m/m, much weaker than expected
- Production of cars, electrical and general machinery slump
- Manufacturers see output recover in June, July
TOKYO, June 30 (Reuters) – Japan’s factory output posted the biggest monthly drop in two years in May as China’s COVID-19 lockdowns and semiconductor and other parts shortages hit manufacturers, adding more pressure on an economy struggling to mount a strong recovery.
The decline also highlights the challenge the world’s third-largest economy faces in overcoming supply disruptions and persistently high prices of raw materials and energy that analysts say could weaken global demand.
Factory output slumped a seasonally adjusted 7.2% in May from the previous month, official data showed on…