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2025.09.1204:38:42UTC+00Japan Industrial Output Shrinks Less than Initially Thought

In July 2025, Japan experienced a 1.2% decrease in industrial production compared to the previous month. This decline was slightly less than the preliminary forecast of 1.6% and followed a 2.1% increase in June. It was the most significant drop observed since November 2024, primarily influenced by uncertainties in US trade, tepid demand, and ongoing weaknesses in critical sectors like automobiles and steel. Output particularly plummeted in several areas: motor vehicles fell by 6.7% compared to a 0.5% increase in June, production machinery decreased by 6.3% versus a 0.5% rise, and general-purpose and business-oriented machinery dropped 4.5% following a 1.6% increase. Annually, industrial production declined by 0.4%, a reversal from the robust 4.4% growth seen in June, which was the highest annual increase since September 2022.

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