TOKYO, Oct. 29 (UPI) -- Japan's September industrial output contracted 4.1 percent from August, the third straight monthly decline as demand slows, the government said Tuesday.
The Ministry of Economy, Trade and Industry said the September figures, blamed largely on sluggish output by automakers, were the sharpest drop since the March 2011 earthquake and tsunami, Kyodo News reported.
The ministry in its assessment said production is on a downward trend with the current seasonally adjusted index standing at 86.5 against the base of 100 for 2005.
Separately, the Bank of Japan, the country's central bank under pressure to stimulate the economy, held its policy meeting Tuesday. Kyodo said there was widespread speculation it will ease monetary policy for the second straight month to fight deflation and spur the recovery.
Japan's export-reliant economy, already hit by the global economic slowdown, is also affected by the worsening dispute with China over a group of islands in the East China Sea. China is a major trading partner of Japan with their annual bilateral trade exceeding $300 billion.
