Japan August factory output unexpectedly falls

TOKYO, Sept 30 : Japan’s factory output unexpectedly fell in August from the previous month, government data showed on Wednesday.

Here are a few details:

• Industrial output shrank 1.7 per cent in August from the previous month, according to data released by the Ministry of Economy, compared to the median market forecast for a 1.7 per cent rise in a Reuters poll. It decreased for a second straight month.

• Manufacturers surveyed by the ministry expect seasonally adjusted output to increase 3.2 per cent in September and grow 3.1 per cent in October.

• In August, motor vehicle production slumped 6.8 per cent from the previous month as an earthquake and a typhoon disrupted operations, while general-purpose and business-oriented machinery output declined 6 per cent.

• The indicator will be among the factors the Bank of Japan will scrutinise as it decides whether to raise interest rates in the near future.