Japan's industrial output unexpectedly fell in August, raising concern that the economy may have fallen back into its second recession since Prime Minister Shinzo Abe took government.

The slump in production is likely to intensify debate on the need for Abe's administration to increase spending and for the central bank to boost its already unprecedented monetary stimulus.

Falling prices, weak consumer spending and a slowdown in key export market China are weighing on Japanese businesses, which are holding back investment and building up inventories in warehouses.