Japan’s Manufacturing Sector Posts Sharp Decline in Q2 Profits

2025-09-01 02:48:36

(MENAFN) Japan’s manufacturing sector experienced an 11.5 percent year-on-year decline in pretax profits during the April-June quarter, official data released Monday revealed, with U.S. tariff measures severely impacting automakers.

Pretax earnings in transportation machinery—including automobiles—plummeted 29.7 percent, while the chemical industry saw profits fall 19.0 percent, weighed down by rising research and development costs and currency swings, the Ministry of Finance reported.

In contrast, non-manufacturing sectors posted a 6.6 percent profit increase, fueled by strong tourism demand that bolstered services and transportation earnings.

Overall, Japan’s corporate pretax profits for the April-June period hit a record 35.83 trillion yen (approximately 243.7 billion U.S. dollars), edging up 0.2 percent year-on-year and marking the third consecutive quarter of growth.

For fiscal 2024, total corporate pretax profits rose 7.5 percent to 114.7 trillion yen.

The Ministry of Finance indicated that the data reflects a slow economic recovery while cautioning that inflation and U.S. trade policies continue to pose significant risks. (1 yen equals 0.0068 U.S. dollars)

MENAFN01092025000045017169ID1110000399

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.