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29.04.202623:57:52UTC+00Japan Industrial Output Unexpectedly Shrinks

Japan’s industrial production declined 0.5% month-on-month in March 2026, undershooting market expectations for a 1.1% increase, though the drop was smaller than February’s 2.0% fall, flash estimates showed. This marked the second consecutive monthly contraction in factory output, as external headwinds continued to pressure the sector. The downturn was driven by rising input costs and supply chain disruptions associated with the conflict in the Middle East. On a year-on-year basis, however, industrial production rose 2.3%, accelerating from a 0.4% increase in February and posting the strongest growth since June 2025.

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