FX.co ★ Japan Industrial Output Unexpectedly Falls

Japan’s industrial production declined by 1.7% month-over-month in August 2026, worsening from a 0.2% drop in July and sharply undershooting market expectations of a 1.7% increase, preliminary data showed. This marked a second consecutive monthly contraction and the fastest pace of decline since February, driven by weaker output across key manufacturing industries amid softening external demand. On a year-on-year basis, industrial production rose 3.4%, easing from a 3.9% gain in July but still registering a third straight month of annual growth.