Tokyo: Japan`s factory output fell 0.6 percent month-on-month in July, worse than market expectations, official data showed on Monday.
The reading from the Industry Ministry was weaker than the median forecast for an increase of 0.1 percent in a survey of economists carried out by Bloomberg News.
In June, industrial production rose 1.1 percent compared to May.
The Industry Ministry also said manufacturers expected output in September would fall 1.7 percent after growth of 2.8 percent in August.
Japan`s exports have slowed, raising concerns about the fragile recovery in the world`s number three economy as demand falls in neighbouring giant China.