Japan’s Factory Output Extends Declines on Car Production Cuts

Smoke rises from a factory during the sunset at Keihin industrial zone in Kawasaki, Japan, on Jan. 16, 2017. Toru Hanai/Reuters

TOKYO—Japan’s industrial output fell for the second straight month in August as COVID-19 outbreaks elsewhere in Asia disrupted supply chains for carmakers already facing headwinds from a prolonged chip shortage.

Separate data out on Thursday showed retail sales in August slipped for the first time in six months as households cut spending amid a coronavirus relapse, signalling lacklustre consumer sentiment.