FX.co ★ Japan Industrial Output Shrinks More than Initially Thought

In April 2025, Japan experienced a 1.1% decline in industrial production from the previous month. This slump was more pronounced than the initially estimated 0.9% decrease and represented a reversal from a 0.2% rise recorded in March. This decline is the second monthly drop in output for the year. The decrease was primarily due to significant reductions in production across various sectors: production machinery experienced a sharp decline of 8.7% compared to a 7.1% increase in March; transport equipment, excluding motor vehicles, fell by 4.1% following a 6.6% rise; and fabricated metals saw a decrease of 3.8% compared to a slight drop of 0.6% previously. Nevertheless, on an annual basis, industrial output increased by 0.5%, which is a slowdown from the 1.0% growth seen in March but still marks the fourth consecutive month of annual expansion.