FILE PHOTO: A worker cycles near a factory at the Keihin industrial zone in Kawasaki, Japan February 28, 2017. REUTERS/Issei Kato/File Photo

TOKYO (Reuters) -Japan's factory output fell 1.6% in July from the previous month, worse than a median market forecast for a 1.0% fall, government data showed on Friday.

Manufacturers surveyed by the Ministry of Economy, Trade and Industry expect seasonally adjusted output to grow 2.8% in August and dip 0.3% in September.

Separate data showed Japanese retail sales rose 0.3% in July from a year earlier, less than the median market forecast for a 1.8% rise.

(Reporting by Satoshi Sugiyama; Editing by Himani Sarkar)