Japan factory output falls most since May

Sluggish performance: A visitor views a customised Toyota GR 86 on display at a car show in Chiba. The company is part of the Japan auto sector that saw output products slump 10.1% in January, dragging the overall index lower. — Bloomberg

TOKYO: Japan’s factory output contracted at the fastest pace in eight months in January as declining overseas demand takes a heavy toll on key industries such as auto and semiconductor equipment.

In contrast, retail sales posted their fastest growth in nearly two years, separate data showed, which highlighted the divergent paths between soft manufacturing and robust service sector activity.