Industrial production in Japan fell by 1.6 percent in September.
Japan’s industrial production fell in September after three months of increase.
Industrial production contracted 1.6 percent from August and turned negative after three consecutive months of increase, the industry ministry said on Monday.
Economists had expected a 0.8 percent drop. The decline in automakers’ production was 1.85 percent overall and accounted for most of the fall.
Still, production in the third quarter saw output increase by 5.9 percent, a positive sign for Japan to continue its recovery from the pandemic.
“Automakers’ production plans do not point to a strong fourth quarter recovery,” said Mari Iwashita, Chief Market Economist at Daiwa Securities.
A separate industry ministry report showed retail sales rose 1.1 percent in September from August and for the third consecutive month. Spending on food and drink and general goods led to gains.
The Fed and major central banks are cooling their economies by aggressively raising interest rates. The impact appears to be affecting some producers in Japan, which may face a further slowdown in global demand.
