Japan factory output down 0.5% amid Iran war energy disruptions
Japan's factories saw output drop by 0.5% in March, marking the second month in a row that things have slowed down.
The decline was linked to energy supply disruptions tied to the Iran war.
This dip surprised analysts who expected growth, and unemployment also ticked up to 2.7%.
Japan chemicals and fuels hit hardest
The chemical and fuel industries got hit hardest: polyethylene production fell 27%, polypropylene was down 15%, and gasoline and diesel output dropped too.
Japan relies heavily on oil from West Asia, so when supply routes like the Strait of Hormuz are blocked, it really stings: costs go up for manufacturers across the board.
METI expects April factory fall 0.7%
METI expects factory output to keep falling in April (by about 0.7%) as these energy problems continue.
Still, there is a silver lining: strong global demand means Japan's exports are holding up even while local manufacturing struggles.