Japan’s Industrial Production Up 2.3% – February Data Released in April

Japan’s Industrial Production Up 2.3% – February Data Released in April

Japan’s industrial production rebounded in February 2025, showing a month-over-month increase of 2.3%, according to the latest data released by Japan’s Ministry of Economy, Trade and Industry. This growth follows a 1.1% decline in January and marks the first positive monthly change after three consecutive months of contraction. However, the latest figure fell short of the preliminary estimate, which had forecasted a 2.5% increase.

The recovery in production was driven by improvements in sectors such as general machinery, electronic parts and devices, and paper products. These areas saw increased output, helping to lift the overall index. On the other hand, declines were recorded in the transportation equipment and non-ferrous metals sectors, which partially offset the gains.

Despite the monthly increase, the year-over-year change in industrial production was modest, with a 0.1% rise compared to February 2024. This indicates that while some areas of Japan’s manufacturing sector are recovering, broader challenges remain due to global supply chain issues and fluctuating export demand.

Economists note that although the February increase is a positive sign, the lower-than-expected result suggests that the recovery is not as robust as hoped. The data may influence future monetary policy discussions, as the Bank of Japan continues to monitor the strength of the domestic industrial sector in the face of external economic uncertainties.