Tuesday, July 29, 2014

Japan’s Industrial Output Tumbles

Japan’s June industrial output fell at the fastest rate since the devastating earthquake and tsunami in March 2011 as companies slowed production to offset a build-up in inventories, official data showed on Wednesday, clouding the outlook for the economy.

Manufacturers expect output to rebound in the coming two months as the pain from a sales tax hike in April fades, although soft exports may mean any any rebound will be modest.

The 3.3 percent month-on-month drop far exceeded the median 1.2 percent fall forecast in a Reuters poll of economists, and followed a 0.7 percent increase in May, data by the Ministry of Economy, Trade and Industry showed.

CNBC

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