Japan: Core machinery orders bounce back in May
July 9, 2020
Core machinery orders—which cover the private sector, exclude volatile orders and are a leading indicator for capital spending over the coming three- to six-month period—increased in May for the first time in three months, confounding market analysts. Specifically, orders increased 1.7% versus the previous month in seasonally-adjusted terms, contrasting both the 12.0% decrease in April and the 5.4% decrease expected by market analysts.
On an annual basis, orders fell at the more moderate pace of 16.3% in May (April: -17.7% year-on-year). Meanwhile, the trend pointed down, with the annual average variation coming in at minus 2.9%, down from April's minus 2.0%.
Author: Edward Gardner, Economist