Japan's Factory Output Unexpectedly Falls for Second Straight Month

Japan's factory output unexpectedly fell in August from the previous month, according to data released by the Ministry of Economy. The industrial output shrank 1.7% in August compared to a median market forecast for a 1.7% rise.

The decline marks the second straight month of decreased production, with manufacturers surveyed by the ministry expecting a rebound in September and October. They predict seasonally adjusted output to increase 3.2% in September and grow 3.1% in October.

Motor vehicle production was particularly affected, plummeting 6.8% from the previous month due to an earthquake and a typhoon that disrupted operations. General-purpose and business-oriented machinery output also declined by 6%. The data will be closely monitored as the Bank of Japan considers whether to raise interest rates in the near future.