The value of industrial production in Japan was down a seasonally adjusted 4.3 percent on month in August, the Ministry of Economy, Trade and Industry said on Thursday.
That missed expectations for a decline of 0.5 percent following the 1.5 percent contraction in July.
On a yearly basis, industrial production advanced 9.3 percent – beating forecasts for a gain of 8.0 percent after rising 11.6 percent in the previous month.
Upon the release of the data, the METI’s assessment of industrial production was that it is pausing.
Industries contributing to the monthly decline included motor vehicles, electrical machinery and electronics equipment. These were offset by support from ceramics, chemicals and petroleum and coal products.
Shipments were down 3.8 percent on month and up 7.7 percent on year, while inventories eased 0.3 percent on month and 3.9 percent on year and the inventory ratio gained 3.4 percent on month but sank 10.3 percent on year.
According to the METI’s forecast for industrial production, output is expected to add 0.2 percent on month in September and 6.8 percent on year in October.
Industries expected to contribute to the gain in September include chemicals, production machinery and electrical machinery.
Industries expected to contribute to the rise in October include transport equipment, production machinery and electrical machinery.
Also on Thursday, the METI said that the value of retail sales in Japan was down a seasonally adjusted 4.1 percent on month in August. That missed expectations for a decline of 2.0 percent following the 1.0 percent gain in July.
On a yearly basis, retail sales dropped 3.2 percent – also shy of expectations for a fall of 1.0 percent after rising 2.4 percent in the previous month.
The material has been provided by InstaForex Company – www.instaforex.com