Japan Industrial Output Drops More than Expected

2025-09-29 23:54 By Farida Husna 1 min. read

Japan’s industrial production shrank 1.2% month-over-month in August 2025, keeping the same pace as in the previous month and marking the second straight month of decline, flash data showed.

The latest result was steeper than market consensus of a 0.8% fall, rattled by US trade uncertainty, soft demand, and continued weakness in key industries such as autos and steel.

Industries that mainly contributed to the decrease were electrical machinery (-5.7% vs 2.1% in July), information and communication electronics equipment, fabricated metals (-7.8% vs -0.8%), and inorganic and organic chemicals (-5.2% vs -2.5%).On a yearly basis, industrial output contracted 1.3%, quickening from a 0.4% fall in July and pointing to the second successive month of yearly decline.



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