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Japan's industrial production fell for the third consecutive month in July as exports slowed and floods disrupted production, and trade disputes clouded Japan's economic outlook.
Industrial production fell 0.1% in July from the previous month, with analysts predicting a median increase of 0.2%, according to data released by the Ministry of Economic Industry on Friday. In June and May, they fell by 1.8% and 0.2% respectively.
A survey by the Ministry of Economics and Industry shows that Japanese manufacturers expect industrial production to increase by 5.6% and 0.5% in August and September, respectively, compared with the previous month.
In recent months, industrial production in Japan has been leveling off, partly due to slowing exports. Natural disasters, including heavy rains and floods in early July that ravaged western Japan, have disrupted production in some companies, including automakers.
Given the fragile domestic demand and trade tensions between the United States and its trading partners, the outlook for industrial production and the overall economy is highly uncertain.
The Ministry of Economy, Industry and Industry downgraded its assessment of industrial production, saying some areas were weak despite gradual increases in production.


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