Japan’s industrial production contracted 1.5% month-over-month in August 2025, steeper than the flash data of a 1.2% fall, which was also July's figure. It was the second straight month of decline and the fastest pace since November 2024, pressured by U.S. trade uncertainty, subdued demand, and continued weakness in key industries such as autos and steel. Industries that mainly contributed to the decrease were electrical machinery (-4.9% vs 1.2% in July), information and communication electronics equipment, fabricated metals (-16.5% vs -15.0%), and inorganic and organic chemicals (-5.4% vs -2.5%). On a yearly basis, industrial output dropped 1.6%, sharply quickening from a 0.4% fall in July and pointing to the second successive month of yearly decline.