Japan’s industrial production rose 0.5% month-over-month in May 2026, matching April’s pace but falling short of market estimates of a 1.1% increase, preliminary data showed, as Middle East tensions continued to pose risks to supply chains and energy costs. Still, it marked the second straight month of expansion. On an annual basis, industrial output declined 1.7%, reversing a 2.0% rise in April and marking the first drop in six months.