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Japan Industrial Output Falls 0.7% In August

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Industrial production in Japan was down a seasonally adjusted 0.7 percent in August compared to the previous month, the Ministry of Economy, Trade and Industry said on Monday - reversing the previous month's gains.

The headline figure missed forecasts for a decline of 0.3 percent following the 3.4 percent jump in July.

On a yearly basis, industrial production eased 0.2 percent - also shy of expectations for a gain of 0.4 percent following the 1.8 percent spike in the previous month.

Upon the release of the data, the METI's assessment of industrial production was unchanged: showing signs of picking up at a moderate pace.

Industries that contributed to the increase included business oriented machinery, chemicals and transport equipment. Commodities that contributed to the increase included large passenger cars, metal oxide semiconductors and reaction vessels.

According to the survey of production forecast in manufacturing, production is expected to be increase 5.2 percent in September and 2.5 percent in October.

Industries that contribute to the increase in September include business oriented machinery, communications equipment and transport equipment. Industries that contributed to the gain in October include business oriented machinery, transport equipment and electrical machinery.

Shipments in August climbed 0.4 percent on month, rising for the second straight month. Shipments also were down 0.8 percent on year.

Industries that contributed to the increase included transport equipment, communications equipment and fabricated metals.

Inventories eased 0.1 percent on month in August, reversing the previous month's gains. Inventories also dropped 3.2 percent on year.

Industries that saw contraction included transport equipment, chemicals and business oriented machinery.

The inventory ratio in August spiked 1.6 percent on month, reversing the previous month's losses. It also dipped 2.7 percent on year.

Also on Monday, the METI said that the total value of retail sales in Japan climbed 1.1 percent on year in August, standing at 11.315 trillion yen. That beat forecasts for an increase of 1.0 percent following the 0.3 percent contraction in the previous month.

Sales from large retailers eased 0.1 percent on year to 1.582 trillion yen - well shy of expectations for a gain of 1.2 percent following the 1.6 percent decline in the previous month.

Commercial sales were up an annual 0.7 percent to 37.468 trillion yen, the data showed, while wholesale sales gained 0.6 percent on year to 26.153 trillion yen.

Finally, the Nomura/JMMA Manufacturing PMI came in with a score of 52.5 in September, up from 52.2 in August.

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