Japan Posts 1.2 Percent Drop in August Industrial Production

(MENAFN) Japan's industrial output fell by 1.2% in August from the previous month, marking the second consecutive monthly decline, according to government data released Tuesday.

The seasonally adjusted index of factory and mine production stood at 100.9, based on a 2020 benchmark of 100. This follows a downwardly revised 1.2% drop in July, data from the Ministry of Economy, Trade, and Industry (METI) revealed.

Production slumped in 12 of the 15 industrial sectors tracked in the survey, notably affecting metal products and both inorganic and organic chemicals.

A significant drop in the production of electrical machinery and information and communication electronics equipment, which fell by 5.7%, was attributed to a decline in demand for personal computers.

However, Japan's automotive sector showed resilience, with motor vehicle production rising 2.5% from July, driven by strong demand in international markets.

Despite the downturn, METI maintained its assessment that industrial output remains "fluctuates indecisively."

A ministry official also commented on the uncertainty surrounding the impact of higher U.S. tariffs on Japan’s industrial production, acknowledging the challenge in gauging the full effects.

Looking ahead, the ministry anticipates a 4.1% increase in industrial output for September and a 1.2% rise in October, based on its survey of manufacturers.

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