Japan’s factory output drops more than expected

Industrial output fell 1.2% in August, government data showed, dropping at a faster pace than a median market forecast for a 0.5% decline and almost completely reversing July’s 1.3% increase.

TOKYO: Japan’s industrial output shrank more than expected in August in the latest warning that the economy and its manufacturers are facing intensifying pressure from a bitter Sino-US trade war.

Retail sales, however, expanded at a faster-than-expected pace, signalling strength in private spending ahead of October’s nationwide sales tax increase and Japan’s economy minister said the government was ready to support the economy if needed.