Japanese firms to cut output on crisis

Japanese companies plan to cut production this month and next as the global financial crisis increases the likelihood of a worldwide recession.

Industrial output will fall 2.3 percent in October and 2.2 percent in November, the Trade Ministry said in Tokyo yesterday. Production climbed 1.2 percent in September from August, when it declined 3.5 percent, the steepest drop in five years.

The government downgraded its assessment of production as the market turmoil chokes off demand for cars and electronics in markets ranging from the US to Russia. The Bank of Japan is considering cutting its target interest rate to 0.25 percent from 0.5 percent to boost the world's second-largest economy, the Nikkei newspaper reported yesterday.