Japan's industrial output falls in June, clouding recovery outlook

Japan’s factory output dropped in June, adding to signs that the economy is struggling to recover from a contraction earlier in 2024.

Industrial production declined 3.6 per cent from May led by automakers and production machinery makers, the Industry Ministry reported on July 31. That compared with the consensus estimate of a 4.5 per cent drop.

Output fell 7.3 per cent from a year ago, but gained 2.9 per cent in the three months through June from the previous period, suggesting it provided some support to the economy last quarter.

Separately, retail sales rose 0.6 per cent in June from May, while they gained 3.7 per cent from a year ago.

The production of cars and auto parts drove the reading lower as an ongoing scandal involving Japan’s large carmakers such as Toyota Motor continues to disrupt output.