Japan: Machinery orders recover in October from September's plunge
December 12, 2018
In October, core machinery orders, a leading indicator for capital spending over a three- to six-month period, rebounded following September’s sharp contraction, which had represented the steepest fall since records began in 1987. The dismal performance in September reflected a strong earthquake and a typhoon. Headline machinery orders (private sector, excluding volatile orders) rose 7.6% in October from the previous month in seasonally-adjusted terms, contrasting the 18.3% decrease in September. The print missed the 10.5% gain expected by market analysts.
Both manufacturing and non-manufacturing orders rebounded in October as did export orders.
Compared to the same month of the previous year, core machinery orders rose 4.5% in October, contrasting September’s 7.0% decline. The annual average variation in core machinery orders rose from 3.2% in September to 3.3% in October.