Japan’s industrial production fell 0.1% month-over-month in May 2025, defying flash estimates of a 0.5% increase and following a 1.1% decline in April. It marked the second consecutive monthly drop, driven mainly by steep declines in transport equipment excluding motor vehicles (-19.2% vs -4.1% in April), electronic parts and devices (-14.8% vs 5.1%), and information and communication electronics equipment (-5.4% vs 11.4%). On a year-on-year basis, industrial output contracted 2.4%, reversing a 0.5% rise in April and marking the first annual decline in five months.