Japanese industrial production slumps in August

Japanese industrial production suffered an unexpected decline in August, data released on Wednesday showed.

According to figures released by the Trade Ministry, industrial output declined 0.5% month-on-month in August, falling short of the 1.0% gain analysts had expected, although the figure marked a slight improvement from the 0.8% drop suffered in July.

The decline in industrial output is expected to intensify the debate over whether Japan’s Prime Minister Shinzo Abe has seen the country slide into its second recession since he took charge.

Abe’s administration is now likely to come under pressure to increase spending, while the Bank of Japan could have to boost its already unprecedented monetary stimulus.

On a year-on-year basis, industrial production grew 0.2%, up from a flat reading in July but way short of the 1.8% increase analysts had forecast.