FX.co ★ Japan Industrial Output Shrinks Less than Estimated

Japan's industrial production experienced a decline of 0.9% in April 2025 on a month-over-month basis, reversing the prior month's 0.2% increase. However, this performance surpassed market forecasts, which anticipated a 1.1% decrease, according to preliminary data. This downturn represents the second decrease in industrial output for the year. Contributing significantly to the decline were production machinery, which plummeted by 8.7% compared to a 7.1% rise in March; transport equipment excluding motor vehicles, which fell by 7.0% versus a previous increase of 6.6%; and fabricated metals, which decreased by 3.7%, following a 0.6% decline in the preceding month. Year-on-year, industrial output grew by 0.7% in April, down from a 1.0% growth in March, yet continuing a trend of expansion for the third consecutive month.