Economic Buzz: Japan?s industrial output falls 1.5% in August

Japan?s industrial production fell 1.5% month-on-month in August 2025, sharper than the flash estimate of a 1.2% fall and marking the steepest drop since November 2024. This was the second straight month of decline, driven by subdued global demand and uncertainty surrounding US trade policy. Output from electrical machinery fell 4.9%, fabricated metals plunged 16.5%, and chemical production dropped 5.4%, extending weakness across key industries. On an annual basis, industrial output declined 1.6%, compared with a 0.4% fall in July, underscoring the growing pressure on Japan?s manufacturing sector.

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