Japan August factory output unexpectedly falls

Japan's factory output unexpectedly declined in August compared to the previous month, according to government data released on Wednesday. Industrial output shrank by 1.7% in August, falling short of the market forecast that predicted a 1.7% increase. This decline marked the second consecutive month of contraction. Manufacturers surveyed by the Ministry of Economy anticipated an increase in seasonally adjusted output by 3.2% in September and 3.1% in October.

However, August saw a sharp decline in motor vehicle production, which plummeted by 6.8% due to disruptions caused by an earthquake and a typhoon. General-purpose and business-oriented machinery output also fell by 6%. The manufacturing sector's performance will be one of the factors considered by the Bank of Japan when deciding on potential interest rate hikes in the near future.