- Japan's government
Japan's industrial production dropped for the second consecutive month in August, indicating the world's third biggest economy continued to falter. Output from manufacturers, mines and utilities declined 1.2% over the month in August, according to the final data from the Ministry of Economy, Trade and Industry. Compared to the same month last year, industrial production fell 0.4%. Slowdown in China, key destination for Japan's exports, has recently taken a toll on the Japanese economy. On top of that, sluggish domestic demand has also an adverse impact on industrial production. The economy contracted 0.3% last quarter, due to a decrease in private demand including non-residential investment.
Japan's government downgraded its economic outlook for the second consecutive month as output weakened, adding to signs that the recovery is stalling as overseas demand declines. The government also lowered its assessment of industrial production. The gloomy overall outlook put more pressure on the Bank of Japan, which meets at the end of the month. Signs of weakness in the economy fuelled some speculation that the government would soon consider additional economic stimulus.
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