Japan Factory Output Up for 2nd Straight Month
By wchung | 07 Apr, 2026

Japan’s industrial production rose for a second straight month in April propelled by robust growth in China and the rest of Asia.

Factory output expanded a seasonally adjusted 1.3 percent from March when it grew 1.2 percent, the government said Monday.

The figure, however, undershot Kyodo news agency’s average market forecast for a 2.5 percent increase.

Higher output among makers of general machinery and fabricated metals led the advance, according to the Ministry of Economy, Trade and Industry’s preliminary report. Parts used in flat-panel televisions also contributed to gains.

Shipments rose 1.6 percent, and inventories were up 0.3 percent.

The latest numbers follow data last week that revealed a mixed picture for Japan’s economic recovery.

Exports in April surged more than 40 percent, expanding for a fifth straight month. The country’s biggest automakers released data Friday showing major sales and production gains.

Toyota Motor Corp., the world’s biggest car manufacturer, said Friday it made 61.5 percent more cars, trucks and buses in April from a year earlier, despite massive global recalls that have hurt its reputation for quality.

But other figures suggested the export boom has yet to positively affect workers and families. The nation’s unemployment rate rose to 5.1 percent, and household spending retreated. Deflation continued to deepen as core consumer prices fell 1.5 percent from a year earlier.

The outlook for Japan’s factories appears weak as production is expected to decelerate in the next two months. The ministry’s poll of manufacturers forecasts production to rise 0.4 percent in May and 0.3 percent in June.

Economists say the likely slowdown is inevitable as governments around the world phase out stimulus measures. In Japan, “eco-points” awarded to buyers of energy-efficient household appliances and tax breaks for eco-friendly cars helped bolster production.

“With both the points and the tax breaks scheduled for termination, it seems unlikely that manufacturers will step up production,” said Goldman Sachs economist Chiwoong Lee in a report.

TOMOKO A. HOSAKA TOKYO (AP)