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Japan’s Industrial Output Falls, Clouding Recovery Outlook

  • Carmakers lead decline in production amid safety scandal
  • Data come ahead of closely-watched BOJ policy decision meeting
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Japan’s factory output dropped in June, adding to signs that the economy is struggling to recover from a contraction earlier in the year.

Industrial production declined 3.6% from May led by automakers and production machinery makers, the Industry Ministry reported on Wednesday. That compared with the consensus estimate of a 4.5% drop. Output fell 7.3% from a year ago, but gained 2.9% in the three months through June from the previous period, suggesting it provided some support to the economy last quarter.