Mount Fuji, Japan

Japan Investment September 2022

Japan: Decline in core machinery orders softens in September

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—decreased 4.6% in month-on-month seasonally -adjusted terms in September, which was a smaller drop than August’s 5.8% decrease.

On an annual basis, machinery orders rose at a more moderate pace of 2.9% in September (August: +9.7% yoy), the worst result since October 2021. Moreover, the trend pointed down, with the annual average growth of machinery orders coming in at 7.8% in September, down from August’s 8.7%.

Septembers print means that core machinery orders fell 1.6% in Q3 as a whole in sequential terms. The statistical release also provided an official forecast for growth of core machinery orders in Q4. It forecast that core machinery orders would rise 3.6%.

Analysts at Nomura commented on the investment outlook:

“We forecast 0.6% q-q growth in real capex in the Oct–Dec 2022 GDP statistics and thus expect another quarter of q-q growth […]. Economic slowdown overseas is still cause for concern, but we forecast that economic reopening and easing of supply constraints will push up capex going forward. We think the Oct–Dec machinery order outlooks are consistent with our view on capex.”

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest