TOKYO, Sept 30 Reuters Japan39;s factory output tumbled last month driven by typhoonled disruptions in motor vehicle production and weak U.S. sales, with the government and analysts cautioning about a subdued outlook that raises the hurdle for a solid economic recovery.
Industrial output fell 3.3 in August from the previous month, data released by the Ministry of Economy, Trade and Industry METI on Monday showed, worse than a median market forecast for a 0.9 drop.
Taking into account overseas factors, it is difficult to expect a significant increase in production in the near future, and the pace of recovery will remain moderate, said Shungo Akimoto, market economist at Mizuho Securities.
Motor vehicles production dropped 10.6 in August compared to a month ago, as Typhoon Shanshan forced a swath of automakers to suspend operations, a METI official said. Automaker39;s certification scandals, which led to the production suspension of three models domestically, also put downward pressure on output.
Weak auto sales in the U.S. might have also dented motor vehicle output, said Takeshi Minami, chief economist at Norinchukin Research Institute.
Production machinery also fell, including a chipmaking machinery down sharply by 18.7 monthonmonth in August. The METI attributed the decrease to weaker overseas demand, with exports to Taiwan dropping significantly.
Although manufacturers surveyed by METI expect seasonally adjusted output to increase 2.0 in September and expand…