TOKYO, Reuters – Japan’s new vehicle sales dropped 11.4% from a year ago in December, according to industry data. This is a result of supply issues that continue to slow down deliveries and impact on fragile consumer consumption.

The pace of the decline, which was 31.3% in Oct and 14.3% November respectively, slowed as automakers recovered from parts shortages last year and Southeast Asian factory closures.

For clues about how Japan’s consumption and output can recover from the last year’s slump caused by pandemics, analysts closely watch data like auto sales.

Recent Omicron coronavirus variant case increases adds uncertainty to the economic outlook. On Jan. 17-18th, Bank of Japan will hold a policy review and produce new quarterly growth projections.

Japan’s manufacturing output rose at its fastest rate ever in November. The global supply chain disruptions that helped to lift auto production out of its slump lifted prospects for an economic rebound in the fourth quarter.

Automakers have yet to get rid of the persistent chip and parts shortages, which has left them unable to fully overcome. Toyota Motor Corp (NYSE:) Corp announced it would stop production at five factories domestically in January.