Japan’s factories cut output more than expected in November due to supply disruptions from flooding in Thailand.
Industrial output fell 2.6 percent last month, much more than a median market forecast of a 0.8 percent decline, wiping out October’s 2.2 percent gain.
Many Japanese electronics firms and carmakers have production facilities in Thailand or rely on parts made there.
Output of Japanese information and communication equipment slumped by nearly a quarter while production of cars and other transportation equipment fell 9.5 percent.
According to a survey by the Ministry of Economy, Trade and Industry, companies expect output to rebound in December but Japan’s economy is predicted to have slowed sharply this quarter.