Japan’s August factory output unexpectedly falls

[TOKYO] Japan’s factory output unexpectedly fell in August from the previous month, government data showed on Wednesday (Sep 30).

Industrial output shrank 1.7 per cent in August from the previous month, according to data released by the Ministry of Economy, compared to the median market forecast for a 1.7 per cent rise in a Reuters poll. It decreased for a second straight month.

Manufacturers surveyed by the ministry expect seasonally adjusted output to increase 3.2 per cent in September and grow 3.1 per cent in October.

In August, motor vehicle production slumped 6.8 per cent from the previous month as an earthquake and a typhoon disrupted operations, while general-purpose and business-oriented machinery output declined 6 per cent.

The indicator will be among the factors the Bank of Japan will scrutinise as it decides whether to raise interest rates in the near future. REUTERS