Japan: Machinery orders plunge in September
November 9, 2017
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) plunged at their fastest pace in over two years in September, suggesting that capital expenditure is losing momentum. Headline machinery orders (private sector, excluding volatile orders) fell 8.1% in September from the previous month in seasonally-adjusted terms, which contrasted August’s 3.4% rise. The print undershot the 1.8% decline that market analysts had expected.
Both overall manufacturing orders and non-manufacturing books contracted markedly in September. Export orders also plunged, signaling that global demand is gradually easing.
Compared to the same month of the previous year, core machinery orders contracted 3.5% in September, which contrasted August’s 3.4% rise. The annual average variation in core machinery orders swung from plus 0.5% in august to minus 0.3% in September.
Author: Edward Gardner, Economist