Shares in Tokyo have suffered from the worrying data

New figures show industrial production slid 2.1% in February from the month before, a worse figure than expected.

The news marks the latest in a string of economic data suggesting the economy in Japan remains fragile.

On Tuesday, unemployment numbers showed an unexpected rise in the number of people out of work, while household spending and retail sales also dropped.

Currency worries

Japan's economy spent much of 2004 contracting slightly.

The recent strength of the yen has hit the ability of Japan's manufacturers to compete overseas, adding falling exports to crucial markets such as China and the US to their other woes.

The government said that despite the falls, the trend overall was flat rather than declining.

"The output figures are continuing to zig-zag," said Kazuaki Hasegawa of the Ministry of Economy, Trade and Industry.

A fall in inventory levels in electronic industries was noted as a sign of good things to come.