Tokyo, September 30 (QNA) - Japan’s industrial production fell 1.7% month-on-month in August 2026, according to preliminary data released by Japan’s Ministry of Economy, Trade and Industry, in a performance that ran counter to market expectations for an increase of around 1.7%.

The decline marked the second consecutive monthly contraction in industrial production, following a 0.2% drop in July. On an annual basis, production rose 3.4% in August, compared with growth of 3.9% in July, marking the third consecutive month of year-on-year growth.

The data showed a decline in production across several key sectors. Motor vehicles production fell 6.8% in August, following a 0.8% increase in July, while production of general-purpose and business-oriented machinery declined 6.0%, compared with a 1.9% increase in the previous month.

Production of petroleum and coal products fell 13.3%, following an 8.6% increase in July.

By contrast, some sectors recorded growth during the month. Production machinery output rose 6.1%, while transport equipment output, excluding automobiles, increased 2.9%. Chemicals production, excluding certain types of chemicals and pharmaceuticals, rose 0.7%.

The monthly decline came at a time when forecasts had pointed to a recovery in Japan’s industrial production in August, after the July reading was revised down to a 0.2% decline from an initially reported 0.1% increase. (QNA)