Machinery orders, a leading indicator of capital spending over a three to six month period, deteriorated sharply in July, due to the strengthening yen and uncertainty about the global economic outlook. In July, core machinery orders (private sector, excluding volatile orders) dropped a seasonally adjusted 8.2% over the previous month, which contrasted the 7.7% expansion tallied in June and undershot market expectations that had orders declining 4.2%. The contraction was the result of a marked deterioration in both non-manufacturing and manufacturing orders. In addition, overseas demand for machinery, which determines future shipments, fell for the fifth consecutive month. Compared to the same month last year, core machinery orders rose 4.0%, which was below both the 17.9% expansion recorded in the previous month and the 8.3% increase expected by market analysts. Meanwhile, the Cabinet Office maintained its assessment that machinery orders are picking up as a trend and left its July-September forecast for core machinery orders unchanged at 0.9%.
Machinery orders plummet in July due to rising yen and global uncertainties
September 8, 2011
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Japan Economic News
October 24, 2016
The Nikkei Flash Manufacturing Purchasing Managers’ Index (PMI) rose from September’s revised 50.4 (previously reported: 50.3) to 51.7 in October.
October 24, 2016
In September, nominal exports valued in yen declined 6.9% from the same month last year, which followed August’s 9.6% decline.
October 12, 2016
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) declined for the first time in three months in August.
October 4, 2016
Consumer sentiment rose from August’s 42.0 to 43.0 in September.
October 3, 2016
According to the Bank of Japan’s quarterly TANKAN business survey, sentiment among large manufacturers was stable at 6 in Q3.