Japan Investment July 2020


Japan: Core machinery orders grows at fastest pace since November 2019 in July

September 10, 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—expanded 6.3% month-on-month in seasonally-adjusted terms in July, bouncing back strongly from June’s 7.6% decline. The result marked the best result since November 2019 and exceeded market expectations of a 1.9% increase.

On an annual basis, machinery orders plummeted 16.2% in July, moderating from June’s 22.5% fall. Moreover, the trend pointed down, with the annual average variation of coming in at minus 7.4% in July, down from June's minus 6.1%.

FocusEconomics Consensus Forecast panelists see gross fixed investment decreasing 5.3% in 2020, which is up 0.5 percentage points from last month’s projection. In 2021, the panel sees gross fixed investment growing 2.5%, up 0.3 percentage points from the prior month’s estimate.

Author:, Economist

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Japan Investment July 20 20

Note: Month-on-month changes of seasonally adjusted core machinery orders and year-on-year growth rate in %.
Source: Ministry of Economy, Trade and Industry (METI) and FocusEconomics calculations.

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