Japan's output unexpectedly fell while stronger retail sales and an improving job market showed resilience, government statistics showed Tuesday as Prime Minister Shinzo Abe weighs another consumption tax increase.
Industrial production declined 1.5 percent in August from July, compared with the median estimate of 31 economists surveyed by Bloomberg News for a 0.2 percent gain. Retail sales increased 1.9 percent from the previous month and the jobless rate slid to 3.5 percent.
The data underscore headwinds for manufacturers as the yen trading near a six-year low fails to boost output, even as domestic demand crawls back after a blow from April's consumption tax hike. Abe's administration has signaled it is prepared to boost stimulus to help consumers and businesses weather any further increase in the tax next year.