(MENAFN- QNA) Japan's industrial production fell 1.5% in August from the previous month, government data showed Tuesday, signaling that demand following April's consumption tax hike is still struggling to recover.
The seasonally adjusted figure was much weaker than the average market projection of 0.3% growth, and followed a rise of 0.4% in July. In June, output dropped 3.4%, according to Japan's (Kyodo) News Agency.
The index of output at factories and mines stood at 95.5 against the base of 100 in 2010, the Ministry of Economy, Trade and Industry said in a preliminary report. It maintained its basic assessment of output, saying it has "weakened."
The index of industrial shipments dropped 1.9% to 94.1, while that of inventories was up 1.0% at 112.7, its highest level since February 2009.
Economists said demand was sluggish especially for durable items such as automobiles and household electronic appliances, with rising inventories hampering a rebound in output.
Production by transport equipment makers, including auto manufacturers, shed 3.8% on month, marking a third straight monthly fall, while output of information and communication electronics equipment, including personal computers and cameras, shed 2.5%, down for the seventh consecutive month.
Electrical machinery makers, which make such products as air conditioners, saw their output fall 3.2%, down for the fifth month in a row.
Manufacturers polled by the ministry expect production to jump 6.0% in September, apparently in reaction to a drop this month, but to fall back 0.2% in October.
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