Japan: Machinery orders rebound in March
May 19, 2016
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) rebounded in March, suggesting higher businesses spending in the coming months. Headline machinery orders (private sector, excluding volatile orders) rose 5.5% in March over the previous month in seasonally-adjusted terms, which contrasted the 9.2% decrease recorded in February. Moreover, the expansion was above the 0.5% increase that market analysts had expected.
Overall manufacturing orders rebounded in March, while non-manufacturing books contracted. Export orders expanded at the fastest pace in five months in March.
Compared to the same month of the previous year, core machinery orders rose 3.2% in March, which contrasted the 0.7% decrease tallied in the previous month. As a result of March’s increase, the trend now points upward, with annual average growth in core machinery orders inching up from February’s 4.0% to 4.1%.