Machinery orders show modest rise in Japan
Japan’s core machinery orders, a closely watched indicator of corporate capital spending, rose 0.5% in August, the government said today.
Core private sector machinery orders were worth 668.1 billion yen (€5bn), according to the Cabinet Office’s monthly report released today.
The figure excludes often-volatile orders from shipbuilders and electric power companies.
The figure undershot Kyodo News agency’s average market forecast of a 2.3% rise. But it marked a slight improvement from a 9.3% decline in July to the lowest level since the government started compiling data in 1987.
Marked improvements in orders at car parts makers and steel companies contributed to the climb.
The latest result adds to signs that while Japanese companies are starting to boost production amid an emerging recovery in global demand, they remain reluctant to spend.
The central bank’s survey of business sentiment showed that companies plant to slash capital expenditures by 10.8% this fiscal year. Companies also said they still have too capacity and too many workers.
Overall orders fell 1.9%, as foreign orders dropped 15.7% and government orders fell 7.2%.
