FX.co ★ Japan Industrial Output Growth Revised Higher

In September 2025, Japan's industrial production experienced a notable increase, rising by 2.6% on a month-over-month basis. This figure exceeded preliminary estimates, which predicted a 2.2% rise, and marked a significant recovery from the 1.5% decline observed in the previous month. This expansion represents the first monthly growth since June and is the most rapid increase since March 2024, driven by a resurgence in several critical sectors. Specifically, output increased significantly for production machinery, which saw a 6.3% boost compared to a 2.1% decrease in August. Similarly, inorganic and organic chemicals surged by 9.1% following a 5.4% drop, and fabricated metals rose by 7.6%, recovering from an 8.1% fall. On a year-over-year basis, industrial production grew by 3.8%, a reversal from the 1.6% decline experienced in August, thus recording the strongest annual growth in three months.