By Daniel Leussink

TOKYO, Reuters – Japan’s industrial output fell for the third consecutive month in September due to a shortage of global supplies. This puts at risk the recovery of the world’s third largest economy.

Japan has been negatively affected by the impact of the COVID-19 pandemic on domestic demand and output problems in Asia.

Official data on Friday showed that factory output fell by 5.4% between the previous month and September. It was mainly due to lower production of general-purpose machines as well as cars.

After falling 3.6% and 1.5% respectively in August, output fell for the third month in a row.

This was the biggest month-on-month drop since May’s 6.5% decline and it was weaker than the 3.2% predicted in a Reuters poll.

Global output is dropping for seven of the eight Japanese automakers, as the chip and parts shortages have weighed down the sector.

Toyota Motor (NYSE:), said Thursday that global production fell by 39.1% in September compared to a year ago. Suppliers are being affected as well.

Friday’s data shows that output for cars and motor vehicles fell 28.2% compared with September. This is the third consecutive month.

The Ministry of Economy, Trade and Industry (METI), which surveyed manufacturers, expected that output would rise 6.4% and 5.7% respectively in October and November.

The government did not change its assessment of the stagnant industrial production.

Separate data revealed that 2.8% of the country’s jobless rate was unchanged from August. However, an index which gauges job availability saw a slight increase to 1.16 (from 1.14 in August).

According to data from government agencies, Tokyo’s core consumer price index, which excludes fresh foods and includes oil products, increased 0.1% in Oct over a year ago.