Inventories had been relatively high in materials industries. However, high-value-added products remained in a favorable supply-demand condition and the effects of inventory adjustments in materials industries seemed to be limited.
The decline in inventories has almost leveled out, and the shipment-inventory balance, on the whole, has improved to a level where there are no inventory adjustment pressures.
Reflecting such weak final demand, firms continued to cut production, and as a result, inventory adjustments in some durable goods progressed. The overall level of inventory, however, was still high.
Against the background of such weak final demand, firms continued to cut production drastically, and as a result, inventory adjustment progressed to some extent, especially in consumer durables.
Production continued to decline sharply, reflecting such developments in final demand and strong pressure for adjustment in inventories of electronic parts and some materials.
They pointed out that this decline was against the background of the fall in exports, a contraction in demand for construction, increased pressure for inventory adjustment, and a shift of production to overseas.
However, the economy was likely to remain stagnant for a while, due to the intensifying pressures of inventory adjustment, the continued decline in public-sector investment, and the anticipated deceleration in business fixed investment.
It may take quite a while for economic activity as a whole to stop declining, even though the decrease in industrial production may moderate somewhat in line with the progress in inventory adjustments such as of IT-related goods.
Some members commented that, although it was expected that production would increase in the October-December quarter, there were uncertainties, such as future developments in adjustments in inventories of materials and U. S.
In NIEs and ASEAN, the economic deceleration was coming to a halt, as exports and production had stopped decreasing on the whole against the background of the progress in inventory adjustmentin IT-related goods worldwide.
There was, however, considerable uncertainty about the degree of progress in inventory adjustmentsin IT-related sectors and about final demand for IT-related goods.
Production continued to decline considerably, reflecting the decline in final demand and strong pressure for adjustments in inventories of goods such as electronic parts and materials.
Due to these developments in final demand as well as persisting strong pressure for inventory adjustments, production would continue to decline markedly at least until the end of March 2002.
Production was expected to continue following a downtrend for the July-September quarter due partly to pressure for inventory adjustments mainly in producer goods, after declining sharply in the April-June quarter.
The pace of decline in exports was slowing due mainly to the slowdown in the decrease in exports of IT-related goods reflecting progress in inventory adjustments such as in semiconductors.
With final demand at home and abroad declining, pressure for inventory adjustments in the raw material industry and a wide range of areas has recently been increasing, which has been spreading to production in the manufacturing industry.
Taking the developments after the Lehman shock as an example, demand declined rapidly and temporarily due partly to inventory adjustments, but picked up as time passed.
NIEs and ASEAN economies also continued to decelerate on the whole. However, exports and production started to show signs of leveling off against the background of the progress in inventory adjustmentsin semiconductors worldwide.
The pace of increase in China's imports decelerated significantly due to such factors as inventory adjustments in some industries and a decline in the pace of increase in new investment brought about by the permeation of the government's measures to contain the overheating of the economy.
政府の3月の月例経済報告では、生産・輸出の下げ止まり、在庫調整の進展から、僅かな上方修正を行った。
In its March issue of the Monthly Economic Report, the Government revised its assessment of the economy slightly upward, given the bottoming out of exports and industrial production and progress in inventory adjustment.
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