Japan Investment

Japan

Japan: Machinery orders contract in September

November 13, 2013

Core machinery orders (a leading indicator of capital spending over a three- to six-month period) contracted for the first time in three months, suggesting that the government is failing to prop up business investment. Headline machinery orders (private sector, excluding volatile orders) fell 2.1% over the previous month in seasonally-adjusted terms, contrasting the 5.4% expansion in August. The decline exceeded the 1.8% drop that market analysts had expected.

Overall manufacturing orders accelerated in September, whereas non-manufacturing books experienced a sharp contraction. Machinery orders from overseas, which determine future exports, continued to expand, albeit at a slower pace.

Compared to the same month last year, core machinery orders rose 11.4% in September, which was above the 10.3% rise recorded in the previous month. The trend continues to point upward; annual average growth in core machinery orders rose from 0.5% in August to 2.5% in September.

The Cabinet Office maintained its assessment on machinery orders and stated that, "machinery orders are picking up." In addition, the Office predicted a 2.1% drop in the fourth quarter, following an expansion of 4.3% in the third quarter.

FocusEconomics Consensus Forecast panelists expect investment to decline 0.1% in 2013, which is down 0.2 percentage points over last month's projection. In 2014, the panel sees investment expanding 3.5%, which is up 0.3 percentage points from last month's estimate.


Author:,

Sample Report

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

Download

Japan Investment Chart


Japan Investment September 2013

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: Core inflation inches up in June

    July 20, 2018

    The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in June, up from May’s flat reading. Core inflation was up a notch to 0.8% in June from 0.7% in May, which was in line with market expectations.

    Read more

  • 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

More news

Search form