16.02.202604:43:52UTC+00Japan Industrial Output Extends Drop

Japan’s industrial production slipped 0.1% month-over-month in December 2025, matching the preliminary estimate. The decline followed a 2.7% drop in November, marking a second consecutive monthly contraction in output, likely due in part to year-end production adjustments.

The main drags on production were:

• Production machinery (-1.5% vs +5.1% in November)
• Chemicals, excluding inorganic and organic chemicals and medicine (-3.4% vs +0.2%)
• Pulp, paper, and paper products (-3.1% vs -1.5%)

These declines were partly offset by gains in:

• 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 a year-on-year basis, industrial production rose 2.6%, rebounding from a 2.2% decline in November and posting its fastest growth in three months.