Japan: Machinery orders rebound in October
December 12, 2016
Core machinery orders (a leading indicator of capital spending over a three- to six-month period) in Japan rose for the first time in three months in October. Headline machinery orders (private sector, excluding volatile orders) expanded 4.1% in October from the previous month in seasonally-adjusted terms, which contrasted the 3.3% decrease recorded in September. The result surprised market analysts who had expected a weaker 1.1% rise.
Overall non-manufacturing books returned to growth in October, while overall manufacturing orders declined at a softer pace in the same month. Export orders expanded for the third consecutive month in October, signaling that global growth is gradually improving.
Compared to the same month of the previous year, core machinery orders contracted 5.6% in October, which contrasted the 4.3% increase observed in September. As a result of October’s annual drop, the trend is now pointing downward. The annual average variation in core machinery orders fell from September’s 1.4% to 0.2%.