Japan Industrial Output Falls Less than Expected

2026-01-29 23:55 By Farida Husna 1 min. read

Japan’s industrial production edged down 0.1% month-over-month in December 2025, much slower than a 2.7% drop in the previous month and less than market forecasts of a 0.4% decline, flash data showed.

However, it marked the second straight month of decrease, reflecting year-end production adjustments.

Industries that mainly contributed to the fall were production machinery (-1.9% vs 5.1% in November), chemicals, excluding inorganic, organic chemicals, and medicine (-2.9% vs -2.1%), and pulp, paper and paper products (-4.1% vs -1.5%).

In contrast, output grew for general-purpose and business-oriented machinery (7.3% vs -0.3%), electrical machinery, and information and communication electronics equipment (2.7% vs -10.1%), motor vehicles (1.4% vs -6.7%).

On an annual basis, production expanded 2.6%, reversing a 2.2% fall in November and marking the strongest pace in three months.



News Stream
Japan Industrial Output Falls Less than Expected
Japan’s industrial production edged down 0.1% month-over-month in December 2025, much slower than a 2.7% drop in the previous month and less than market forecasts of a 0.4% decline, flash data showed. However, it marked the second straight month of decrease, reflecting year-end production adjustments. Industries that mainly contributed to the fall were production machinery (-1.9% vs 5.1% in November), chemicals, excluding inorganic, organic chemicals, and medicine (-2.9% vs -2.1%), and pulp, paper and paper products (-4.1% vs -1.5%). In contrast, output grew for general-purpose and business-oriented machinery (7.3% vs -0.3%), electrical machinery, and information and communication electronics equipment (2.7% vs -10.1%), motor vehicles (1.4% vs -6.7%). On an annual basis, production expanded 2.6%, reversing a 2.2% fall in November and marking the strongest pace in three months.
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Japan Industrial Output Drops Slightly More than Anticipated
Japan’s industrial production fell 2.7% month-over-month in November 2025, slightly deeper than the flash estimate of a 2.6% decline and reversing a 1.5% growth in the previous month. It was the first decline since August and the sharpest drop since January 2024, reflecting weaker external demand at year-end and ongoing inventory adjustments. The largest drags came from electrical machinery and information and communication electronics equipment (–10.1% vs 7.4% in October), motor vehicles (–6.6% vs 6.7%), and fabricated metals (–6.5% vs 1.6%). On an annual basis, output contracted 2.2%, swinging from October’s 1.6% growth and marking the first decline in three months as well as the steepest fall since May.
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Japan’s industrial production dropped 2.6% month-on-month in November 2025, reversing a 1.5% increase in the previous month and missing market expectations of a 2.0% decline, according to flash data. It was the steepest decrease since January 2024, reflecting weaker external demand toward year-end and ongoing inventory adjustments. Industries that mainly contributed to the fall were electrical machinery and information and communication electronics equipment (-10.1% vs 7.4% in October), motor vehicles (-6.6% vs 6.7%), and fabricated metals (-6.4% vs 1.6%). On a yearly basis, industrial output shrank 2.1%, reversing a 1.6% growth in October and marking the first decline in three months. It also indicated the steepest yearly drop since May.
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