TOKYO (AP) -- Japan's industrial production dropped 1.2 percent in February from the previous month as demand decreased for electronic parts, the government said Monday.
The data from the Ministry of Economy, Trade and Industry marked the second straight month of decline, but was better than the 2.2 percent fall expected by economists surveyed by Dow Jones and Nikkei.
The latest numbers add to growing fears that a slowdown in the U.S. due to the credit crunch could weigh on Japanese manufacturers and exports. Shipments slipped 2.6 percent, while inventories rose 0.1 percent, the ministry said.
Lower production in Japan of pulp, paper and paper products, as well as of transportation equipment also contributed to the fall, it said.
Industrial output in February marked an increase of 4.2 percent compared to the same month the previous year.
There are growing concerns about the health of Japan's economy. Recent data show that the nation's inflation rate climbed at its fastest level in a decade in February, and the jobless rate has worsened to 3.9 percent.
The Ministry of Internal Affairs and Communications said Friday the core consumer price index rose 1.0 percent in February from a year ago -- the fastest reading since March 1998.
