Japan Investment


Japan: Machinery orders remain subdued

September 12, 2013

Core machinery orders (a leading indicator of capital spending over a three- to six-month period) improved slightly in July, although the result undershot market expectations. Headline machinery orders (private sector, excluding volatile orders) were flat compared to the previous month in seasonally-adjusted terms, following the 2.7% drop in June. The print was well below the 2.4% increase market analysts had expected.

Overall manufacturing orders expanded strongly in July, while non-manufacturing books recorded zero growth. Machinery orders from overseas, which determine future exports, recorded a mild gain.

Compared to the same month last year, core machinery orders rose 6.5% in July, which was above the 4.9% rise recorded in the previous month. The trend continues to point upward, with annual average growth in core machinery orders rising from minus 1.1% in June to minus 0.7% in July.

The Cabinet Office maintained its assessment on machinery orders, stating that, "machinery orders are picking up moderately." In addition, the Office predicted a 5.3% drop in the third quarter, following an expansion of 6.8% in the second quarter.

FocusEconomics Consensus Forecast panelists expect investment to fall 0.8% in 2013, which is down 0.4 percentage points over the previous month's projection. In 2014, the panel sees investment expanding 3.4%.


Sample Report

Looking for forecasts related to Investment in Japan? Download a sample report now.


Japan Investment Chart

Japan Investment July 2013

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