Japan Industrial Output Falls More than Initially Anticipated

Japan’s industrial production dropped 2.4% month-over-month in August 2026, steeper than flash data of a 1.7% decline and July's 0.2% fall. It was the second straight month of monthly contraction and the steepest pace since January, reflecting weaker output across key manufacturing sectors amid weak export demand. Output contracted for motor vehicles (-6.8% vs 0.8% in July), general-purpose and business-oriented machinery (-6.3% vs 1.9%), and petroleum and coal products (-13.3% vs 8.6%). In contrast, production rose for production machinery (5.9% vs 5.1%), and transport equipment excluding motor vehicles (2.5% vs -4.0%). On an annual basis, industrial output increased 2.7%, down from 3.9% in July, marking a third consecutive month of growth.

Japan’s industrial production fell 1.7% month-over-month in August 2026, deepening from a 0.2% drop the prior month and missing market forecasts of a 1.7% rise, preliminary data showed. It was the second straight month of monthly contraction and the steepest pace since February, reflecting weaker output across key manufacturing sectors amid softer export demand. Output shrank for motor vehicles (-6.8% vs 0.8% in July), general-purpose and business-oriented machinery (-6.0% vs 1.9%), and petroleum and coal products (-13.3% vs 8.6%). In contrast, production grew for production machinery (6.1% vs 5.1%), transport equipment excluding motor vehicles ( 2.9% vs -4.0%), and chemicals excluding inorganic, organic chemicals, and medicine (0.7% vs 0.2%). On an annual basis, industrial output rose 3.4%, down from 3.9% in July, marking a third consecutive month of growth.

Japan’s industrial production fell 0.2% month-over-month in July 2026, defying flash figures of a 0.1% rise and reversing 1.9% growth in the previous month. It was the first decline since March amid external uncertainties and uneven global demand. Output was lower for transport equipment excluding motor vehicles (-4.0% vs 2.0% in June), fabricated metals (-3.2% vs 2.2%), and plastic products (-0.9% vs 4.5%). In contrast, production rose for production machinery (5.1% vs 7.7%), inorganic and organic chemicals (6.0% vs 2.6%), and electronic parts and devices (2.6% vs -6.1%). On an annual basis, industrial output increase 3.9%, slowing from 4.9% in June but marking a second consecutive month of growth.