Japan: Core machinery orders dip in December
Latest reading: 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—dropped 1.2% month-on-month in seasonally adjusted terms in December (November: +3.4% mom s.a.).
On an annual basis, machinery orders increased 4.3% in December, which was well below November’s 10.3% expansion. Meanwhile, the trend improved, with the annual average growth of machinery orders coming in at 1.5%, up from November’s 1.1%.
Outlook: Along with the December data, the statistical office also released a forecast for core machinery orders in Q1. According to the body, core machinery orders are set to fall 2.3% quarter on quarter, marking the third fall in the past year.