Japan: Core machinery orders rise in June
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—rebounded 0.9% month-on-month in seasonally-adjusted terms in June (May: -5.6% mom).
On an annual basis, machinery orders rose at a softer pace of 6.5% in June (May: +7.4% yoy). Accordingly, the trend pointed down, with the annual average growth of machinery orders coming in at 9.0% in June, down from May’s 10.0% reading.
The June release also included a forecast for quarter-on-quarter growth of core machinery orders in Q3. According to the forecast—made by the Ministry of Economy, Trade and Industry—core machinery orders are set to contract 1.8% this quarter.