Industrial output in August dropped 2.2 percent from the previous month, the Ministry of International Trade and Industry said in a preliminary report released Sept. 30.

The production index for mines and factories, compared against 100 from the 1990 base year, came to a seasonally adjusted 101.2, up 4.1 percent from a year ago, the report says.

Based on the latest monthly figure, a ministry official said, the production index for the July-September period is now estimated at 102.2, down 0.4 percent from the previous three-month period. However, a ministry official said Japan's overall production activities remain roughly on the same level, pointing out that the production index for October will probably post 102.7, slightly above those in the first and second quarters of this year.

He also said the level of production remains relatively high, with a production index maintaining an above-100 level for eight consecutive months in August. The monthly drop was attributed to a substantial decrease in automobile production as carmakers tried to adjust their excessive stock.