FX.co ★ Japan’s Industrial Output Outlook Swings Sharply as February Forecast Drops to -4.3%

Japan’s industrial production forecast two months ahead has turned sharply negative, with the February 2026 projection showing a -4.3% month‑over‑month change, compared with an 8.0% gain in January 2026. The data, updated on 29 January 2026, signal a marked reversal in momentum after a strong start to the year.

The figures are based on month‑over‑month comparisons: the January reading reflected an 8.0% increase versus December, while the latest February forecast indicates a 4.3% decline versus January. This swing suggests a cooling in production expectations following the earlier surge, highlighting potential volatility in Japan’s near‑term industrial activity.