FX.co ★ Japan's Capacity Utilization Increases to 2.0% in May 2025, Up From 1.3% in April

Japan's capacity utilization registered a notable increase in May 2025, climbing to 2.0% from 1.3% in April, according to the latest data released on July 14, 2025. The month-over-month improvement signifies a strengthening industrial activity performance, marking a positive shift from the relatively modest uptick recorded in the previous period.

In April 2025, capacity utilization edged up to 1.3%, setting the stage for a more robust expansion in May. The consistent growth in this indicator underscores the resilience of Japan's industrial sector amidst ongoing global economic challenges. The one-month jump of 0.7 percentage points suggests that industries are beginning to operate at a higher efficiency, potentially signaling an uptick in overall economic momentum.

This development comes as Japan seeks to bolster its economic output and navigate the complex landscape of global supply chains. Increased capacity utilization often reflects heightened demand and can be an early indicator of future economic growth, offering some optimism for Japan's economy in the months ahead as it continues to recover and adapt post-pandemic.