Japan’s factory output rose less than expected in May, missing analysts’ estimates as U.S. tariffs hit the nation’s exports, clouding the outlook for the Asian economy as it faces the risk of a technical recession.

Industrial production increased 0.5% from the previous month, the industry ministry reported Monday. Economists had expected a 3.5% gain. Output fell 1.8% from a year earlier, missing expectations of a 1.6% rise.

Forecasts for the next few months also remained weak, with manufacturers anticipating monthly production to gain 0.3% in June and decline 0.7% in July, according to the release.