Japanese manufacturing production declined further in August, with the rate of contraction accelerating to the fastest in 16 months. The latest reduction in factory output was the third in as many months.
Reflecting falling new orders and corresponding spare capacity, backlogs of work decreased further in August. The rate at which firms depleted work-in-hand (but not yet completed) was sharp, and the steepest since May 2009.
Japan is in its third deflationary decade in spite of massive fiscal stimulus, massive monetary stimulus and the major industrial world's highest debt-to-GDP ratio.