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Japan Factory Output Falls 1.7% in August as Manufacturing Faces New Pressure

Tokyo skyline and Shibuya district in Japan

Japan’s factory output fell 1.7% month-on-month in August, government data showed, marking an unexpected decline.

The result came below market expectations and adds a fresh indicator for policymakers monitoring manufacturing, exports and the broader economy.

Japan’s Cabinet Office said the economy is recovering moderately, while external risks remain important. More business news.

Source: Reuters and Japan Cabinet Office, September 30, 2026.

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Imran Siddiqui

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