Japan's factory output fell 3.3 per cent from May to June, the latest sign to highlight that the recent sales tax rise is affecting consumer demand. It is the biggest decline in output since the 2011 earthquake and tsunami. Japan raised its sales tax, also known as consumption tax, from 5 to 8 per cent in April this year. The weak output numbers follow data released yesterday which showed retail sales in June declined more than forecast, down 0.6 per cent from a year ago. Meanwhile, household spending in the country has also fallen in recent months.