Japan’s industrial production posts surprise decline

According to data from the Ministry of Economy, Trade and Industry, output declined 1.7% month-on-month, while economists had expected a 1.3% increase. Industrial production fell for a second consecutive month but rose 3.4% year-on-year. Declines in automobile, industrial machinery and petroleum production weighed on the figures.

The decline was driven in part by supply chain disruptions caused by the magnitude 7.1 earthquake that struck Kumamoto on July 28, as well as higher costs stemming from conflicts in the Middle East. Japan’s industry ministry expects production to increase 3.2% in September and 3.1% in October. Retail sales, meanwhile, rose 2.7% year-on-year in August.