Factories made fewer goods in September as makers of cars and electronic devices cut production while consumer prices fell for the 19th month, underscoring that the economic recovery is losing steam.
Factory output was down 1.9 percent from the previous month following a 0.5 percent fall in August, the government said Friday.
Companies are being battered by the strong yen, which is hovering near a historical high versus the dollar, and slowing growth in key overseas markets like the U.S. and China. The yen's appreciation erodes the value of exporters' overseas profits when brought back to Japan and makes their products more expensive in foreign markets.