Japan Investment August 2018

Japan

Japan: Machinery orders expand again in August

October 10, 2018

Core machinery orders, a leading indicator for capital spending over a three- to six-month period, expanded for the second consecutive month in August, suggesting that capital expenditure will boost overall economic growth further down the road. Headline machinery orders (private sector, excluding volatile orders) expanded 6.8% in August from the previous month in seasonally-adjusted terms, following the 11.0% increase in July. The print was above the 4.0% increase expected by market analysts.

Although growth in both manufacturing and non-manufacturing orders slowed in August, the print was still robust. Overseas demand also improved as growth in export orders accelerated in August.

Compared to the same month of the previous year, growth in core machinery slowed from 13.9% in July to 12.6% in August. The annual average variation in core machinery orders rose from 2.9% in July to 3.5% in August.

Japan Fixed Investment Forecast


FocusEconomics Consensus Forecast panelists expect private non-residential investment to rise 2.7% in 2018, which is down 0.4 percentage points from last month’s projection. In 2019, the panel sees private non-residential investment expanding 2.2%. In addition, FocusEconomics Consensus Forecast panelists expect gross fixed investment to increase 1.5% in 2018, which is down 0.2 percentage points from last month’s projection. In 2019, the panel sees gross fixed investment growth at 1.4%.


Author: Ricard Torné, Lead Economist

Sample Report

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

Download

Japan Investment Chart


Japan Investment August 2018

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: Composite PMI slumps in February, raising chances of technical recession in Q1

    February 21, 2020

    The Jibun Bank composite Purchasing Managers’ Index (PMI) slumped to 47.0 in February from a revised 50.1 in January (previously reported: 51.1), according to a flash reading released on 21 February, suggesting private sector activity declined from the previous month at the fastest pace in nearly six years. The services PMI dropped to 46.7 in February from a revised 51.0 in January (previously reported: 52.1).

    Read more

  • Japan: Core inflation ticks up in January

    February 21, 2020

    The core consumer price index increased 0.1% in month-on-month seasonally-adjusted terms in January, matching December’s result.

    Read more

  • Japan: Core machinery orders fall in December

    February 19, 2020

    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—fell in December for the fifth time in six months. Specifically, core machinery orders dropped 12.5% in December compared to the previous month in seasonally-adjusted terms, falling faster than market analysts’ expectation of a 9.0% decrease and contrasting the 18.0% increase in January. In year-on-year terms, core machinery orders fell 3.5% in December, contrasting the 5.3% increase in November.

    Read more

  • Japan: Exports drop for 14th month running in January

    February 19, 2020

    Yen-denominated merchandise exports fell 2.6% in January in year-on-year terms, after dropping 6.3% in December.

    Read more

  • Japan: Economy contracts sharply at the end of 2019

    February 17, 2020

    The economy contracted 6.3% in Q4 compared to the previous quarter in seasonally-adjusted annualized terms.

    Read more

More news

Search form