Japan Investment

Japan

Japan: Machinery orders deteriorate in June

August 12, 2013

Core machinery orders, a leading indicator of capital spending over a three- to six-month period, deteriorated in June following the large increase registered in May. Headline machinery orders (private sector, excluding volatile orders) contracted a seasonally adjusted 2.7% over the previous month, contrasting the 10.5% surge tallied in May. However, the print was above the 7.0% decrease market analysts had expected.

Moreover, both overall manufacturing orders and non-manufacturing books decreased in June, while machinery orders from overseas, which determine future exports, also registered a contraction.

Compared to the same month last year, core machinery orders rose 4.9% in June, which was below the 16.5% jump recorded in the previous month. The trend continues to point upwards, with annual average growth in core machinery orders rising from minus 2.5% in May to minus 1.1% in June.

Notwithstanding the monthly drop, the Cabinet Office revised its assessment on machinery orders upward slightly, stating that, "machinery orders are picking up moderately," instead of saying that they are, "showing signs of moderately picking up." The Office reported a 6.8% growth in machinery orders for the second quarter, which is the largest quarterly gain since Q3 2008, just before the global crisis began to have an impact. In contrast, the Office predicts a 5.3% drop in the third quarter.

FocusEconomics Consensus Forecast panellists expect investment to fall 0.4% in 2013, which is up 0.2 percentage points over the previous month's projection. In 2014, the panel sees investment expanding 3.1%.


Author:, Economist

Sample Report

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

Download

Japan Investment Chart


Japan Investment June 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: 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