JAPAN NEWS



 

Japan's seasonally adjusted core machinery orders in January fell 5.5% from the previous month, after a spike driven by large-scale orders in December, Cabinet Office data showed Thursday.

The private-sector orders excluding those for ships and equipment used at power companies, closely watched as a leading indicator of corporate capital spending, came to ¥982.4 billion.

The government agency kept its basic assessment intact, saying that machinery orders are showing signs of picking up.

Many private think tanks expect corporate capital spending to remain firm, but concerns linger over the conflict in Iran.

"If (the military conflict) drags on, there is a risk that appetite for capital spending will shrink at once," said Takeshi Minami of Norinchukin Research Institute.

Machinery orders from manufacturers dropped 12.5% to ¥435.8 billion. In the previous month, the sector was boosted by large-scale orders from the nonferrous metal industry and the oil and coal sector.

Core orders from nonmanufacturers rose 6.8% to ¥563.2 billion, driven by orders for computers and road vehicles including trailers.

Total machinery orders, including those from the public sector and abroad, declined 2.0% to ¥3,942.1 billion.