Japan: Machinery orders contract in July amid an uncertain global economic outlook
September 12, 2019
Core machinery orders, a leading indicator for capital spending over a three- to six-month period, slipped in July as global trade tensions continue to disrupt investment planning. Headline machinery orders (private sector, excluding volatile orders) declined 6.6% over the previous month in seasonally-adjusted terms in July, contrasting the 13.9% surge in June. The print, however, overshot the 9.9% decrease expected by market analysts.
Overall non-manufacturing books plummeted in July, while manufacturing orders posted a healthy rebound. Export orders posted a contraction in the same month amid waning global demand.
Compared to the same month of the previous year, core machinery orders expanded 0.3% in July, following June’s 12.5% increase. The annual average growth in core machinery orders fell from 2.0% in June to 1.2% in July.