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%.
Author: Stephen Vogado, Economist