FX.co ★ Japan Industrial Output Decline Confirmed

Japan’s industrial production fell 2.0% month-over-month in February 2026, slightly better than the preliminary estimate of a 2.1% decline and following a 4.3% increase in January. This was the first contraction since November, driven by weaker output in motor vehicles (-3.6% vs +8.1% in January), fabricated metals (-5.9% vs +6.0%), and electronic parts and devices (-3.5% vs +1.9%).

In contrast, production increased for iron, steel, and non-ferrous metals (2.4% vs 2.3%), chemicals excluding inorganic and organic chemicals and pharmaceuticals (1.7% vs 3.6%), and pulp, paper, and paper products (1.6% vs 0.7%).

On a yearly basis, industrial output rose 0.4%, easing from a 0.7% gain in January but marking the third consecutive month of annual growth.