Japan: Machinery orders rebound in December
February 17, 2016
Following disappointing GDP data for Q4, the rebound in core machinery orders (a leading indicator of capital spending over a three- to six-month period) represents positive news for the country as it signals still-resilient capital expenditure. Headline machinery orders (private sector, excluding volatile orders) rose 4.2% in December over the previous month, in seasonally-adjusted terms, which contrasted the 14.4% decrease recorded in November. That said, the increase was below the 4.7% expansion that market analysts had expected.
Overall manufacturing orders continued to contract in December, albeit at a slower pace, while non-manufacturing books rebounded. In addition, the drop in export orders eased in December.
Compared to the same month of the previous year, core machinery orders fell 3.6% in December, which contrasted the 1.2% increase tallied in the previous month. In the full year 2015, core machinery orders expanded 4.1%, which was broadly stable compared to the 4.0% increase tallied in 2014.