Japan’s Factory Output Falls for First Time in Four Months as Firms Battle Rising Costs

A man works at a factory at the Keihin industrial zone in Kawasaki, Japan, on Feb. 28, 2017. Issei Kato/Reuters

TOKYO—Japan’s factory output fell in September for the first time in four months as manufacturers grappled with rising raw materials costs and global economic slowdown, and is likely to fall again next month before picking up in November, the government said.

In a brighter sign for the world’s third-largest economy, retail sales grew for a seventh consecutive month, raising hope for a sustainable boost in consumption after the easing of COVID-19-related inbound border controls earlier in October.