Japan: Core machinery orders contract at sharpest pace in six months in August
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—nosedived 5.8% in month-on-month seasonally-adjusted terms in August, which contrasted July’s 5.3% increase. August’s result marked the worst reading since February.
On an annual basis, machinery orders grew 9.7% in August, which was significantly below July’s 12.8% expansion. Meanwhile, annual average machinery orders growth fell to 8.7% in August (July: +9.1%). This signals a worsening trend in the sector.