Japan Power Sales Slump Most Since 1972 on Recession

By Megumi Yamanaka

Feb. 20 (Bloomberg) -- Japan’s industrial power sales slumped by the most in three decades, plunging 19 percent in January as exporters led by automakers and steel companies closed plants and reduced output.

The drop, the fourth consecutive month of declines, was the biggest since 1972, when the Federation of Power Companies of Japan started compiling data, the group said in a statement today. Sales to steel manufactures plunged the most, or 37 percent, and sales to non-ferrous metal producers and machinery manufacturers dropped by 24 percent.

Japanese manufacturers from Toyota Motor Corp. to Sony Corp. are reducing production as the stronger yen combined with the global recession trims demand for exports including cars and electronics goods. The country’s exports plunged 13.9 percent in the fourth quarter.

Sales by Tokyo Electric Power Co., Chubu Electric Power Co.Kansai Electric Power Co., Chugoku Electric Power Co. and Kyushu Electric Power Co. all dropped by records. Chugoku Electric had the biggest decline, posting a slump of 27 percent.

The previous record decline was in December, when industrial sales fell by 13 percent.

To contact the reporter on this story: Megumi Yamanaka in Tokyo at myamanaka@bloomberg.net.