Japan's factory output unexpectedly fell in February at the fastest pace in eight months in a possible sign that the benefits from last-minute demand before an impending sales tax hike may have run their course.
The data adds to growing concerns of a stumble in the economy, and comes on the heels of a separate survey showing manufacturing activity expanded at a slower pace in March.
The Ministry of Economy, Trade and Industry (METI) said industrial output fell 2.3 percent in February from the previous month, compared with a 0.3 percent rise expected by economists in a Reuters poll.
The weak result followed a solid 3.8 percent gain in January, which was driven by brisk production of cars and household appliances.
Manufacturers surveyed by the ministry expect output to rise 0.9 percent in March but decrease 0.6 percent in April, the METI data showed, suggesting a lack of confidence in domestic demand.
The data comes a day before the national sales tax rises to 8 percent from 5 percent on Tuesday.
Source: Reuters
