Economic Buzz: Japan?s industrial output drops 1.6% in July

Japan?s industrial production fell 1.6% month-on-month in July 2025, reversing June?s 2.1% rise and marking the sharpest decline since November 2024. The downturn was driven by weaker demand, US trade uncertainty, and pressure on core industries. Motor vehicle output slumped 6.7%, while production machinery fell 6.2% and business-oriented machinery declined 4.5%. On a yearly basis, output contracted 0.9%, swinging from June?s robust 4.4% growth, the strongest since September 2022.

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