TOKYO (Reuters – Japan’s October automobile sales dropped 31.3% from a previous year to mark its fourth consecutive month in declines. Industry data on Monday showed that this was a result of output cuts caused the COVID-19 epidemic, which is affecting already fragile consumption.

Since Sept. 30, the State of Emergency Curbs were lifted to fight the Pandemic, domestic sales data has been one of few indicators that can gauge strength of consumption.

This sales slump is a sign of the growing economic damage caused by supply disruptions. Global shortages of parts and chips have caused severe damage to automakers. This has led to them having to reduce global production and delayed delivery.

Analysts say that if the supply restrictions continue, Japan could be unable to rebound strongly from its expected negative or flat growth in July and September.

Taro Saito from NLI Research Institute, said that the economists expect October-December to see an average annual growth of 5%. This is primarily due to high consumption.

He said, “But there’s many risks,” including supply shortages that could last longer than anticipated. Saito predicts the economy would contract 0.9% by the end of the third quarter.

Japan’s preliminary July-September gross domestic product data (GDP) will be released by the government on November 15.