Japan Industrial Output Extends Drop

Japan’s industrial production rose 2.2% month-over-month in January 2026, reversing a 0.1% drop in the previous month but missing market estimates of a 5.3% growth, flash data showed. It was the first yearly increase since last October, as manufacturers resumed production following year-end maintenance. Industries that mainly contributed to the increase were motor vehicles (9.1% vs 1.4% in December), plastic products (8.1% vs flat reading), chemicals, excluding inorganic, organic chemicals, and medicine (7.4% vs -3.0%). On an annual basis, production expanded 2.3%, slowing from a 2.6% gain in December and marking the second straight month of increase.

Japan’s industrial production edged down 0.1% month-over-month in December 2025, in line with flash data. The latest result followed a 2.7% decline in the previous month, marking the second straight month of decrease in industrial output that likely reflecting year-end production adjustments. Industries that mainly contributed to the fall were production machinery (-1.5% vs 5.1% in November), chemicals, excluding inorganic, organic chemicals, and medicine (-3.4% vs 0.2%), and pulp, paper and paper products (-3.1% 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%), and 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.

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.