Japan’s industrial output decreased by 0.5% in March compared to the previous month, attributed to a surge in crude oil prices and supply chain disruptions from the Middle East conflict. This decline impacted the production of chemical and petroleum products, as per government data released on Thursday.
The seasonally adjusted index of production at factories and mines was reported at 101.9, based on the 2020 index of 100, according to the Ministry of Economy, Trade and Industry. This drop follows a 2% decline in February, with eight out of fifteen sectors experiencing decreased output.
In fiscal 2025, industrial output in Japan fell by 0.2% from the previous year to 101.2, marking the fourth consecutive year of decline. The Ministry of Economy, Trade and Industry anticipates a 2.1% increase in output for April and a further 2.2% rise in May, as reported by Xinhua news agency.
The Bank of Japan (BOJ) recently decided to maintain its benchmark interest rate at around 0.75% following a two-day monetary policy meeting. This decision was made amidst ongoing uncertainty surrounding the Middle East conflict, which has led to higher crude oil prices and trade disruptions affecting Japan’s corporate profits and household incomes.
