Japan’s August Capacity Utilization Index Falls 4.2% MoM

This reversal matters because capacity utilization is a demand-side signal: it reflects whether factories are actually running, not just whether they have orders on the books. A swing this sharp suggests the softer factory activity is broad rather than concentrated in one sector, which matters for Japan's industrial supply chain and for the machinery and materials that feed it. Whether the decline proves a one-month air pocket or the start of a weaker run is the open question, with the next monthly print the first real test.