Japan Investment

Japan

Japan: Machinery orders contract for first time in three months

May 16, 2012

Machinery orders, a leading indicator of capital spending over a three to six month period, deteriorated for the first time so far this year. In March, core machinery orders (private sector, excluding volatile orders) contracted a seasonally adjusted 2.8% over the previous month, which contrasted the 2.8% rise recorded in February (previously reported: +4.8% month-on-month). Nevertheless, the print overshot market expectations that had orders declining 3.5%. The deceleration was the result of an outright contraction in manufacturing orders, particularly in chemical products, while non-manufacturing bookings recorded a softer drop. However, machinery orders from overseas, which determine future exports, continued to decline in March. Compared to the same month last year, core machinery orders fell 1.1% in March, which contrasted both the 8.9% rise observed in February and the 4.4% expansion expected by market analysts. Accordingly, the trend deteriorated in March, with annual average growth falling from 7.6% in February to 6.2% in March. According to the survey, the Cabinet Office predicts a 2.5% expansion in the second quarter, after the 0.9% rise posted in the first three months of this year. Meanwhile, the Cabinet Office maintained its assessment on machinery orders, envisaging


Author:,

Sample Report

Looking for forecasts related to Investment in Japan? Download a sample report now.

Download

Japan Investment Chart


Japan Industry March 2012

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.


Japan Economic News

  • Japan: Machinery orders decline in May

    July 11, 2018

    Although core machinery orders—a leading indicator of capital spending over a three- to six-month period—contracted in May, the fall was weaker-than-expected, suggesting that capital expenditure will gain steam further down the road.

    Read more

  • Japan: Business confidence weakens in Q2

    July 2, 2018

    According to the Bank of Japan’s quarterly Tankan business survey, sentiment among large manufacturers fell in the second quarter of 2018, suggesting economic momentum has yet to gain traction following a weak first quarter.

    Read more

  • Japan: Consumer confidence declines marginally in June

    June 29, 2018

    Consumer sentiment inched down to 43.7 in June from 43.8 in May, coming in just below market expectations of a stable print.

    Read more

  • Japan: Industrial production falls in May

    June 29, 2018

    Industrial production contracted 0.2% on a month-on-month and seasonally-adjusted basis in May, contrasting April’s revised 0.5% increase (previously reported: +0.3% month-on-month).

    Read more

  • Japan: Core inflation stable in May

    June 22, 2018

    The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in May, reversing April’s 0.1% fall. Core inflation was steady at 0.7% in May, unchanged from April and in line with market expectations.

    Read more

More news

Search form