Japan Industrial Output Rebounds More than Expected

Japan’s industrial production increased by 2.2% month-over-month in September 2026, reversing a 2.4% decline in the previous month and surpassing market estimates of 1.3%, preliminary data showed. It was the fastest growth since January, reflecting higher output across key manufacturing sectors as export demand recovered. Industries that mainly contributed to the upturn were motor vehicles (5.5% vs -6.8% in August), production machinery (3.4% vs 5.9%), and general-purpose and business-oriented machinery (4.8% vs -6.3%). In contrast, output contracted for iron, steel and non-ferrous metals (-1.6% vs -1.4%), ceramics, stone and clay products (-1.9% vs -2.4%), and chemicals excluding inorganic, organic chemicals, and medicine (-1.0% vs -0.3%). On an annual basis, production rose 1.9%, down from 2.7% in August, marking the softest growth in four months.

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.