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27.02.202605:00:00UTC+00Japan’s Construction Orders Growth Cools Sharply to 5.7% in January YoY

Japan’s construction sector saw a marked slowdown in growth at the start of 2026, as year-over-year construction orders rose 5.7% in January, down sharply from a 20.2% increase in December 2025. The latest data, updated on 27 February 2026, highlight a significant loss of momentum compared with the year-earlier period.

Both figures are measured on a year-over-year basis, with January 2026 orders compared to January 2025, and December 2025 orders compared to December 2024. While the sector remains in positive territory, the steep deceleration suggests that the surge seen at the end of 2025 has eased, potentially reflecting normalization after strong base effects or a cooling in new project commitments.

Investors and policymakers will be watching upcoming data to determine whether January’s weaker growth marks the beginning of a broader softening in construction activity or a temporary pause following an unusually strong December.

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