Industrial output in Japan fell a seasonally adjusted 0.5 percent on month in August, the Ministry of Economy, Trade and Industry said in Wednesday’s preliminary reading.
That was well shy of forecasts for an increase of 1.0 percent following the 0.8 percent decline in July.
On a yearly basis, industrial production added just 0.2 percent – also below expectations for a gain of 1.8 percent following the flat reading in the previous month.
Upon the release of the data, the METI downgraded its assessment of industrial production, saying that it has weakened; previously, the METI said output had been fluctuating indecisively.
Industries that mainly contributed to the monthly decline included business-oriented machinery, electrical machinery and transport equipment.
According to the survey of production forecast in manufacturing, production is expected to rise 0.1 percent in September and jump 4.4 percent in October.
Industries that mainly contribute to the increase in September included electrical machinery, communications equipment and chemicals.
Industries that mainly contribute to the increase in October included business-oriented machinery, transport equipment and electrical machinery.
Shipments in August were down 0.5 percent on month, down for the second straight month. They were also up 0.8 percent on year.
Industries that mainly contributed to the decline included business-oriented machinery, fabricated metals and paper products.
Inventories in August added 0.4 percent on month, reversing the previous month’s losses. They were also up 2.2 percent on year.
The inventory ratio in July climbed 6.1 percent on month, rising for the first time in three months. It also showed an increase of 1.0 percent on year.
Also on Wednesday, the METI said that retail sales in Japan were up 0.8 percent on year in August. That missed expectations for an increase of 1.2 percent following the 1.8 percent jump in July.
Sales from large retailers jumped an annual 1.8 percent – beating forecasts for an increase of 1.3 percent following the 2.1 percent spike in the previous month.
On a seasonally adjusted monthly basis, retail sales were flat in August versus expectations for an increase of 0.5 percent and down from 1.4 percent a month earlier.
The material has been provided by InstaForex Company – www.instaforex.com