Japan final May industrial output rises 0.1% m/m

Japan's industrial output in May 2026 rose by 0.5% month-on-month, according to data released by the Ministry of Economy, Trade and Industry on June 30. This figure fell short of the median market forecast of a 1.1% increase. The growth marks the second consecutive month of expansion, with notable contributions from the transport equipment and chemical sectors, which saw output rise by 4.6% and 3.7%, respectively.

Looking ahead, surveyed manufacturers anticipate a 3.7% increase in seasonally adjusted output for June, followed by a flat reading in July. These projections may influence the Bank of Japan’s future monetary policy decisions, particularly regarding potential interest rate adjustments. The data underscores a modest but sustained recovery in Japan’s manufacturing sector, though the pace of growth remains below expectations.