Affected by the earthquake and the situation in Iran, Japan's industrial output fell for the second consecutive month.

Japan's industrial production fell for a second straight month, hit by an earthquake in southern Japan that disrupted manufacturing operations, as well as manufacturers continuing to grapple with high costs stemming from Middle East conflict. Output in August fell 1.7% from July, data from the Ministry of Economy, Trade and Industry showed Wednesday, while economists had expected a 1.3% increase. On a year-on-year basis, industrial production was up 3.4% in August, below the consensus estimate for a 6.8% gain. Industries that logged output declines included motor vehicles, general machinery, production machinery and petroleum products. However, output of transport equipment excluding motor vehicles increased. The data released Wednesday were partly affected by a magnitude 7.1 earthquake that struck Kumamoto Prefecture in southwestern Japan on July 28. Aftershocks continued for some time after the initial tremors, which further exacerbated the impact on supply chains, with the effects even reaching Aichi Prefecture, home to Toyota Motor.