Japan Industrial Output Rises Less than Expected

Japan’s industrial production increased by 0.5% month-over-month in May 2025, shifting from a 1.1% drop in the previous month but missing market consensus of a 3.5% growth, flash data showed. It marked the third monthly increase this year, driven by rebounds in production machinery (5.6% vs -8.7% in April) and motor vehicles (2.5% vs -0.9%). At the same time, general-purpose and business-oriented machinery picked up pace (4.5% vs 3.0%). On an annual basis, industrial output slipped by 1.8%, reversing a 0.5% gain in April and marking the first decline in five months.