FX.co ★ Japan Industrial Output Rises Less than Expected

Japan’s industrial production increased by 2.2% month-over-month in January 2026, rebounding from a 0.1% decline in December but falling short of market expectations for a 5.3% rise, according to flash estimates. This marked the first annual increase since October, as manufacturers ramped up operations following year-end maintenance. The main contributors to the monthly gain were motor vehicles (up 9.1% vs 1.4% in December), plastic products (up 8.1% vs flat previously), and chemicals excluding inorganic and organic chemicals and pharmaceuticals (up 7.4% vs a 3.0% decline). On a year-on-year basis, industrial output grew 2.3%, easing from a 2.6% increase in December but registering a second consecutive month of expansion.