Wednesday, November 14, 2012

September - Japan Industrial Output Falls, Outlook Lowered

Japanese industrial production fell an unexpectedly large 4.1% in September from a month earlier, government data showed Tuesday, a sign that Japan's economy may be losing more steam than expected amid the global slowdown.

The figures released by the Ministry of Economy, Trade and Industry are the worst in recent years with the exception of the March 2011 earthquake and the Lehman shock in 2008-2009.
  Sales have been especially weak to China, where exports are being hit by both a slowdown in growth and tensions between Tokyo and Beijing over a recent flare-up in a territorial dispute. Last week, the government said Japan had a ¥558.6 billion (US$7 billion) trade deficit in September as exports fell 10.3% overall, while sales to China were off 14.1% compared to year-ago results.

The fall in industrial production, adjusted for seasonal factors, was larger than the 3.1% decline forecast by economists surveyed by Dow Jones Newswires and the Nikkei. The result marks the third straight month of decline, and comes after a 1.6% fall in August.

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