Japan's industrial production rose 0.5% month-over-month in May 2026, matching April's pace. Growth was supported by higher output of transport equipment, chemicals, and petroleum products, while machinery and electronics production declined. On an annual basis, industrial output fell 1.7%, reversing April's 2.0% increase and marking the first yearly contraction in six months, with Middle East tensions continuing to pose risks to supply chains and energy costs.
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