Machinery orders, a leading indicator of capital spending over a three to six month period, improved in January, thereby signalling that the world's third largest economy is recovering on the back of reconstruction spending and a better outlook for external demand. In January, core machinery orders (private sector, excluding volatile orders) expanded a seasonally adjusted 3.4% over the previous month, which contrasted the sharp 7.1% contraction recorded in December. Moreover, the print overshot market expectations, which had orders gaining a milder 2.3%. The acceleration was the result of a strong rebound in non-manufacturing orders, although manufacturing orders also improved. Moreover, overseas demand for machinery, which determines future exports, expanded a buoyant 20.1% in January, after growing a softer 5.6% in December. Compared to the same month last year, core machinery orders grew 5.7% in January, which was below the 6.3% rise seen in the previous month but overshot the 4.4% increase expected by market analysts. Meanwhile, the trend was stable in January, with the annual average growth in machinery orders remaining unchanged at December's 7.8%. The Cabinet Office expects that machinery orders will expand 2.3% in the first quarter this year, after they posted a smaller-than-expected 2.6% drop in the last quarter of 2011.
Machinery orders rebound in January
March 11, 2012
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Japan Economic News
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.
September 30, 2016
In August, the core consumer price index was flat compared to the previous month, which was above the 0.2% decline in July.
September 30, 2016
In August, industrial production expanded 1.5% over the previous month in seasonally-adjusted terms, which contrasted July’s 0.4% decrease (previously reported: 0.0% month-on-month).