TOKYO, Feb 29 Reuters Japan39;s January factory output fell at the fastest pace since May 2020, government data showed on Thursday, as a production downturn in motor vehicles adds to concerns about the fragility of an economy that slipped into recession late last year.

Industrial output fell 7.5 in January from the previous month, data from the Ministry of Economy, Trade and Industry METI showed. It was slightly worse than the median market forecast for a 7.3 drop, with output sliding in 14 of the 15 industries surveyed by METI.

The ministry also downgraded its assessment of industrial output for the first time since July last year, laying bare the challenges for the economy as it tries to recover from a recession at the end of last year.

Analysts at Capital Economics say the data suggest GDP may have contracted again in the current quarter.

The plunge in industrial production January suggests that GDP will fall yet again this quarter, which will add to the view that Japan39;s economy is in recession, said Gabriel Ng, assistant economist at Capital Economics.

Production declined the most in motor vehicles, down 17.8 in January from the previous month. Output decreases in regular passenger cars and electrical drives systems pulled down the overall figures.

Japanese automaker Toyota Motor in January suspended shipments of some models after finding irregularities in certification tests for diesel engines developed by affiliate Toyota Industries.

Toyota39;s smallcar…