SNEHA STILLS IN BHAVANI

TOKYO (AP) -- Cautious Japanese companies laid off more workers and hit the brakes on production in February, sending factory output down for the first time in a year.

Industrial production in the world's second-biggest economy retreated 0.9 percent from January, following 11 consecutive months of gains, the government said Tuesday. The result undershot Kyodo News agency's average market forecast of a 0.4 percent decline.

A separate report showed Japan's unemployment rate was unchanged at 4.9 percent in February. But the number of jobless rose 8.4 percent from a year earlier to 3.24 million, with 1.1 million saying they were laid off.

February's output lull is expected to be temporary. The Lunar New Year holidays during the month lowered demand across Asia, and a surprisingly robust 2.7 percent jump in January pointed toward an inevitable downturn in the following month.