Japan's industrial output falls at fastest pace in over three years

TOKYO, July 30 (KUNA) -- Japan's factory output fell 3.3 percent in June from the previous month, the steepest decline in more than three years, chiefly due to a build-up in inventories following the April 1 sales tax hike, official data showed Wednesday.
The drop followed a 0.5 percent gain in May and saw the biggest fall since the earthquake-tsunami disaster in March 2011, the Ministry of Economy, Trade and Industry said.
The weak data suggested that the April sales tax hike affected demand consumer demand.
The government raised sales tax from 5 percent to 8 percent on April 1, the first increase in 17 years. By sector, output for transport equipment makers declined 3.4 percent.
The ministry downgraded its basic assessment of industrial production of the world's third-biggest economy for the first time in one year and nine months, saying "It has weakened." For May assessment, the ministry said "It appears to be flat." Looking ahead, manufacturers polled by the ministry expect production will increase 2.5 percent in July and 1.1 percent in August. (end) mk.ibi