FX.co ★ Japan Industrial Output Drops Slightly More than Anticipated

In November 2025, Japan experienced a 2.7% month-over-month decrease in industrial production, slightly exceeding the preliminary estimate of a 2.6% drop. This downturn reversed the 1.5% growth recorded the previous month and marked the first decline since August, as well as the most significant drop since January 2024. The fall can be attributed to weakened external demand at the end of the year and ongoing inventory adjustments. Notable declines were observed in sectors such as electrical machinery and information and communication electronics equipment, which plummeted 10.1% following a 7.4% increase in October. The motor vehicles sector also saw a steep decline of 6.6%, reversing from a 6.7% rise, and fabricated metals fell by 6.5% against a previous 1.6% gain. On an annual scale, production contracted by 2.2%, a shift from the 1.6% growth witnessed in October, marking the first annual decline in three months and the sharpest downturn since May.