Japan’s industrial production fell 1.7% month-over-month in August 2026, deepening from a 0.2% drop the prior month and missing market forecasts of a 1.7% rise, preliminary data showed. It was the second straight month of contraction and the steepest pace since February, reflecting weaker output across key manufacturing sectors amid softer export demand. On an annual basis, industrial output rose 3.4%, down from 3.9% in July, marking a third consecutive month of growth.