Japan's factory output fell last month, indicating flagging momentum for manufacturers as they coped with uncertainties surrounding Donald Trump’s sweeping tariff campaign.

Industrial production dropped 1.1% in March compared with the previous month, the industry ministry reported Wednesday. Economists had forecast a 0.4% drop. Manufacturers predicted output will increase by 1.3% this month.

The ministry also reported that retail sales increased 3.1% in March compared with a year earlier, extending the streak of gains to 37 months.