FX.co ★ Japan Industrial Output Rises Less than Expected

In May 2025, Japan experienced a 0.5% increase in industrial production compared to the previous month, according to preliminary data. This marked an improvement from the 1.1% decline observed in the prior month but fell short of the anticipated 3.5% growth as per market expectations. It was the third instance of monthly growth for the year, primarily fueled by recoveries in production machinery, which rose by 5.6% after an 8.7% decrease in April, and in motor vehicles, which climbed by 2.5% following a 0.9% drop. Additionally, there was accelerated growth in general-purpose and business-oriented machinery, which saw an increase to 4.5% from 3.0%. However, on an annual scale, industrial output decreased by 1.8%, countering a previous 0.5% increase in April. This marked the first annual decline in five months.