Japan Investment

Japan

Japan: Machinery orders rebound strongly in September

November 12, 2015

Core machinery orders (a leading indicator of capital spending over a three- to six-month period) rebounded sharply to an 18-month high, after having declined in the previous three periods. Headline machinery orders (private sector, excluding volatile orders) expanded 7.5% in September over the previous month, in seasonally-adjusted terms, which contrasted the 5.7% decrease recorded in August. The result overshot the 3.3% increase that market analysts had expected.

While overall manufacturing orders declined in September, non-manufacturing books expanded at the fastest pace since May 2013. In addition, export orders in September rebounded, after having contracted in the previous month at the steepest rate in over one year.

Compared to the same month last year, core machinery orders contracted 1.7% in September. The print followed the 3.5% drop tallied in the previous month. Despite the slight improvement seen in September, the trend now points downward, with annual average growth in core machinery orders falling from August’s 3.9% to 3.0%.

FocusEconomics Consensus Forecast panelists expect private non-residential investment to rise 1.0% in 2015, which is down 0.5 percentage points over last month’s projection. In 2016, the panel sees private non-residential investment expanding 2.1%, which is down 0.7 percentage points over last month’s estimate. In addition, FocusEconomics Consensus Forecast panelists expect gross fixed investment to increase 0.5% in 2015, which is down 0.2 percentage points over last month’s projection. In 2016, the panel sees gross fixed investment growth at 1.4%, which is down 0.3 percentage points over last month’s projection.


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 September 2015

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: Machinery orders decline in May

    July 11, 2018

    Although core machinery orders—a leading indicator of capital spending over a three- to six-month period—contracted in May, the fall was weaker-than-expected, suggesting that capital expenditure will gain steam further down the road.

    Read more

  • Japan: Business confidence weakens in Q2

    July 2, 2018

    According to the Bank of Japan’s quarterly Tankan business survey, sentiment among large manufacturers fell in the second quarter of 2018, suggesting economic momentum has yet to gain traction following a weak first quarter.

    Read more

  • Japan: Consumer confidence declines marginally in June

    June 29, 2018

    Consumer sentiment inched down to 43.7 in June from 43.8 in May, coming in just below market expectations of a stable print.

    Read more

  • Japan: Industrial production falls in May

    June 29, 2018

    Industrial production contracted 0.2% on a month-on-month and seasonally-adjusted basis in May, contrasting April’s revised 0.5% increase (previously reported: +0.3% month-on-month).

    Read more

  • Japan: Core inflation stable in May

    June 22, 2018

    The core consumer price index rose 0.1% in month-on-month seasonally-adjusted terms in May, reversing April’s 0.1% fall. Core inflation was steady at 0.7% in May, unchanged from April and in line with market expectations.

    Read more

More news

Search form