Japan's Industrial Production Faces a Minor Setback

The seasonally adjusted industrial production index in Japan experienced a slight monthly decrease of 0.1%, settling at 101.2 in May. This marks a 2.4% decline compared to the same month in 2024, as detailed in the revised report by the Ministry of Economy, Trade and Industry (METI) released on Monday.

Mixed Signals in Shipments and Inventories

On a brighter note, the shipments index saw a 2.4% increase month-on-month, reaching 102.2, though it still faced a 2.3% drop year-on-year. Meanwhile, the inventories index recorded a downturn, landing at 99.5. This reflects a 1.8% decrease from the previous month and a 3.1% fall compared to May 2024.

Inventory Ratio Shows Varied Trends

The inventory ratio was noted at 105.5, showing a 1.1% decrease on a monthly basis but a 1.7% increase annually, indicating a complex interplay of factors affecting Japan's industrial sector.