JAPAN’S industrial output stalled in September in a worrying sign that the economy, already struggling to mount a sure-footed recovery, may be losing some momentum due to weak consumer spending and exports.

    Separate data showed retail sales fell more than expected in September from a year ago, further evidence that private consumption remains a drag on growth.

    Industrial output was unchanged in September from the previous month. That compares with the median estimate in a poll of a 1 percent increase and followed a 1.3 percent increase in August, data by the Ministry of Economy, Trade and Industry showed yesterday.

    Economists say output may not pick up much in coming months. The cautious view and other data showing weak consumption and falling consumer prices could heighten expectations that the Bank of Japan (BOJ) will yet again push back the timing of its price target.

    Industrial output was flat in September as declines in semiconductor and personal computer production offset gains in autos and construction equipment.

    Manufacturers surveyed by the ministry expect output to rise 1.1 percent in October and gain 2.1 percent in November, but their forecasts are often overly optimistic, economists say.

    Overall inventories fell 0.4 percent versus a 0.3 percent increase in the previous month, but there were signs that high inventories in some industries could curb future output, according to Daiju Aoki, economist at UBS Securities.

    Inventories of mobile phones and car navigation systems jumped 14.1 percent, the fastest gain in six months. Inventories of construction equipment also rose 1.2 percent in September.

    In the July-September quarter, industrial output rose 1.1 percent, faster than a 0.2 percent gain in the previous quarter, but economists say growth could moderate slightly in the October-December period.

    Retail sales fell 1.9 percent in September from a year ago, slightly more than a median market forecast for a 1.8 percent annual decline due to lower spending on apparel and daily necessities, data from the trade ministry showed. (SD-Agencies)