Japan August factory output unexpectedly falls
EWJ•Japan’s industrial output fell 1.7% in August from July, against a forecast for a 1.7% rise, marking a second straight monthly decline. Manufacturers expect output to rise 3.2% in September and 3.1% in October.
1. Output falls in August
Industrial output fell 1.7% in August from the previous month, compared with the median market forecast for a 1.7% increase. Output declined for a second consecutive month.
2. Vehicles and machinery decline
Motor vehicle production slumped 6.8% as an earthquake and a typhoon disrupted operations. General-purpose and business-oriented machinery output fell 6%.
3. September and October outlook
Manufacturers surveyed by the ministry expect seasonally adjusted output to increase 3.2% in September and 3.1% in October. The data will be among the factors the Bank of Japan scrutinises as it considers whether to raise interest rates in the near future.
