Japan's industrial output fell at its fastest rate in three months in May, fuelling fears of an economic contraction in the current quarter.
Fresh government data released Monday shows that industrial output fell 2.2 percent in May, much worse than expectations of a 0.8% decline. Some analysts say they wouldn't rule out the risk of an economic contraction in the second quarter because sluggish exports remain a drag on growth.
Economists are already forecasting much slower growth in the April to June period as manufacturers curb production to reduce their inventories. Japan's economy has been forecasted to expand 1.3 percent in the second quarter, much less than the 3.9 percent pace in the year's first three months.