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.



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