Japan factory output falls on weak overseas demand and typhoon disruption: Reuters poll By Reuters

TOKYO (Reuters) – Japan’s industrial output likely fell in August, weighed down by weak overseas demand and the shutdown of local factories due to a typhoon, factors that could hurt the momentum of an overall economic recovery, a Reuters poll showed on Friday.

Industrial production was expected to fall 0.9 percent in August from a month earlier, the poll of 18 analysts showed, after a 3.1 percent rise in July.

“Industrial production took place while the overseas economy continues to grow at a slower pace, exports of high-tech products did not grow as much as expected, and there are also scandals of certification of automobiles,” said Takeshi Minami, chief economist at Norinchukin Research. Institute.

Automobile exports were likely sluggish, while both domestic and foreign demand for machine tools was weak, Minami added.

Typhoon Shanshan, which hit Japan in late August, may have contributed to downward pressure on factory output, an analyst at SCB Research Institute said. The typhoon caused factories including Toyota (NYSE: ) and semiconductor firm Renesas to temporarily halt operations.

Japan’s economy grew at a slightly slower but still solid pace than initially reported in the second quarter, hurt by downward revisions to corporate and household spending.

Analysts expect the economy to continue to improve, supported by rising wages and personal and corporate spending, although risks remain due to external factors such as a potential slowdown in the United States economy and sluggish demand in China. China announced a series of stimulus measures this week, but analysts note that it will take time to revive activity.

Meanwhile, retail sales were expected to rise 2.3 percent in August from a year earlier, after rising 2.6 percent in July. Economists attributed the increase to strong demand for clothing and canned food following the typhoon and an earthquake.

Japan’s jobless rate was expected to fall slightly to 2.6 percent in August from 2.7 percent in July, and the jobs-to-claims ratio was likely to remain at 1.24 last month, the survey showed.

The Commerce Department will announce both factory output and retail sales at 8:50 a.m. on Monday, September 30 (2350 GMT Sunday), while jobs data will be released at 8:30 a.m. on Tuesday, October 1.