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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