"The slowdown in exports is greater than previously thought"
- Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance
Japan's industrial output fell more than expected in August, as the demand for cars and electronics was weak due to the global slowdown. As reported by the Ministry of Economy, Trade and Industry, nation's industrial production slumped to a seasonally adjusted -1.3%, down from -1.0% in July, adding concerns that the world's third biggest economy may slip into recession by the end of 2012.
"The slowdown in exports is greater than previously thought. On top of that, anti-Japan demonstrations and boycott of Japanese goods in China will have an impact on corporate output plans," said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance.
"There is a chance that our economic growth forecast for Japan will be downgraded. And the possibility has certainly increased for Japan to enter a recession."
The Nikkei 225 Stock Average retreated 0.83 per cent, or 73.65 points, to 8,796.51. The broader Topix Index slid 0.69 per cent, or 5.07, to 732.35.
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