Surprise fall in Japan's July industrial output

Tokyo

JAPAN's industrial output unexpectedly fell in July in a worrying sign that high inventories and weak overseas demand could further hamper an economy struggling to recover from a slump in the second quarter.

The 0.6 per cent decline in output in July was much worse than the median estimate for a 0.1 per cent increase and follows a 1.1 per cent rise in June, trade ministry data showed on Monday.