TOKYO, Dec 28 Reuters Japan39;s factory output declined in November, weighed by falls in autos production and clouding the outlook for the exportreliant economy.

Industrial production fell 0.9 in November from the previous month, data from the Ministry of Economy, Trade and Industry METI showed on Thursday. The reading was better than the median market forecast for a 1.6 drop.

Motor vehicle production, which has underpinned industrial output, fell 2.5 in November from the prior month due to slowdowns in the manufacturing of small cars and engines, a METI official said.

Output of electrical machinery and information and communication electronics equipment also fell 3.5, due to sluggish demand in semiconductor and integratedcircuit testing equipment, the official said.

Manufacturers surveyed by the industry ministry expect seasonally adjusted output to increase 6.0 in December and decline 7.2 in January. METI maintained its assessment of industrial output as seesawing.

We39;ll continue to monitor the impact of the global economic downturn and rising prices, the official said.

Furthermore, a production halt at Toyota Motor39;s small carunit Daihatsu due to safety scandal is expected to add downward pressure on output from January onward, the METI official said.

The small car specialist has suspended output in Japan until the end of next month, the company said this week.

Automobilerelated production has recovered steadily this year thanks to easing supply…