Industrial production fell 0.7 percent in August from the previous month as domestic demand turned sluggish in some sectors, according to data released Monday by trade ministry.
The Ministry of Economy, Trade and Industry, however, maintained its basic assessment in the preliminary report, saying output has shown "signs of picking up at a moderate pace."
"A 0.7 percent drop is not a small decline on a single-month basis, but it was not large enough to downgrade our assessment," a METI official said without stating whether the reading might affect the Cabinet's decision Tuesday on the consumption tax hike next April.