Japan’s industrial capacity utilization staged a notable recovery in December 2025, rising 1.3% month-over-month after a steep 5.3% decline in November. The latest data, updated on 16 February 2026, suggest a partial normalization in factory use following a sharp contraction at the end of autumn.
The December rebound indicates that Japanese producers increased their use of existing production capacity compared with November, when utilization dropped markedly versus the prior month. On a month-over-month basis, the “actual” figure for December reflects improvement from the “previous” period’s performance, which had shown a significant pullback.
While the data do not detail sector-level drivers, the turnaround from -5.3% to 1.3% will be closely watched by investors and policymakers as a signal of underlying momentum in Japan’s industrial activity heading into 2026, particularly after the volatility seen in late 2025.
