Japan's industrial output drops for 1st time in 4 months in September

TOKYO, Oct. 31 (Xinhua) -- Japan's industrial output fell in September from a month earlier, owing to a slowdown in overseas economies, the government said in a report on Monday.

According to the Ministry of Economy, Trade and Industry (METI), industrial output in September dropped 1.6 percent from a month earlier, marking the first decline in four months.

The latest slump follows an upwardly revised increase of 3.4 percent logged in August, the ministry said.

The ministry's preliminary data for September showed the seasonally adjusted index of production at factories and mines stood at 98.6 against the 2015 base of 100.

As a result, the government maintained its basic assessment that factory output in Japan is "showing signs of picking up moderately."

The index of industrial shipments fell 2.4 percent to 95.2, the data showed, marking the first decline in four months. Inventories, meanwhile, climbed 3.0 percent to 103.9, rising for the fourth successive month, METI said.

Motor vehicles fell the most, tumbling 12.4 percent, from a month earlier, to book a second straight month of decline, the ministry said. This was owing to a drop in vehicle component and motorbike production, the data showed.

Chemicals, both organic and inorganic, retreated 6.3 percent in the reporting period, while production machinery was dragged down 1.8 percent as rising prices triggered parts and materials shortages, the ministry said.

Chemicals, with the exception of organic and inorganic ones, saw increases in production, the data showed, as did medicine in the reporting period, METI said.

Overall in the reporting period, 15 industries reported a decline in output, compared to just four reporting increases, METI said.

The ministry's survey revealed that looking ahead, manufacturers polled expect industrial output here to drop 0.4 percent in October before rebounding 0.8 percent in November.