2019.09.3003:32:00UTC+00Japan Industrial Production Declines More Than Expected

Japan's industrial production declined at a faster-than-expected rate in August, preliminary data from the Ministry of Economy, Trade and Industry showed on Monday.

Industrial production fell 1.2 percent month-on-month in August. Economists had expected a fall of 0.5 percent.

The monthly fall of shipments was 1.4 percent in August, while inventories remained unchanged and the inventory ratio increased 2.8 percent.

On a yearly basis, industrial production declined 4.7 percent in August.

According to the survey of production forecast in manufacturing, production is expected to increase in September and decrease in October.

Another data from the ministry showed that retail sales grew 2 percent year-on-year in August, offsetting 2 percent decrease a month ago. This was the biggest growth since last October. Sales were forecast to grow only 0.7 percent.

Separate data from the Ministry of Land, Infrastructure, Transport and Tourism showed that the housing starts decreased 7.1 percent year-on-year in August, following a 4.1 percent fall in July. Economists had expected a 6.1 percent decline.

Annualized housing starts fell 891,000 in August from 910,000 in July. The expected level was 902,000. In the same period last year, housing starts totaled 958,000.

Data also showed that construction orders received by big 50 constructors fell 25.9 percent in August, reversing a 26.9 percent in the previous month.