Industrial output in July dropped 0.7 percent from the previous month -- the first decline in three months -- the Ministry of International Trade and Industry reported Wednesday, although officials said an overall trend of modest increase continues.

The seasonally adjusted index of industrial production reached 105 against a 100-point benchmark established in 1995, according to MITI's preliminary report.

A MITI official in charge of research and statistics attributed the decline to a temporary reaction against an increase of 1.9 percent logged in the previous month.