Japan’s industrial production edged down 0.1% month-over-month in December 2025, in line with flash data. The latest result followed a 2.7% decline in the previous month, marking the second straight month of decrease in industrial output that likely reflecting year-end production adjustments. Industries that mainly contributed to the fall were production machinery (-1.5% vs 5.1% in November), chemicals, excluding inorganic, organic chemicals, and medicine (-3.4% vs 0.2%), and pulp, paper and paper products (-3.1% vs -1.5%). In contrast, output grew for general-purpose and business-oriented machinery (7.3% vs -0.3%), electrical machinery, and information and communication electronics equipment (2.7% vs -10.1%), and motor vehicles (1.4% vs -6.7%). On an annual basis, production expanded 2.6%, reversing a 2.2% fall in November and marking the strongest pace in three months.