The economy ministry says the production trend is still positive

Output was 0.7% lower than in August because of a drop in exports, according to data from the Ministry of Economy, Trade and Industry.

It blamed the slowdown mainly on weaker demand for cars, auto parts and machines to produce semiconductors.

Despite the monthly fall, output was still 5.1% higher than a year before.

'Rising trend'

The fall follows a 1.8% rise in output in August.

The ministry said it now expected output to fall by 0.2% in October from September but then rise 0.5% in November.

It also said: "Generally speaking, production remains on a rising trend."

However Japan's Mitsubishi Motors said that during the first half of the year it has experienced a difficult time.

"We're not hopeful that sales will recover easily in some key markets, including Taiwan, Indonesia, and Malaysia," said the firm's managing director Hiizu Ichikawa.