Japan’s core machinery orders fell 0.1% in July

TOKYO (Jiji Press) — Seasonally adjusted core orders for machinery in Japan fell 0.1% in July from the previous month, the Cabinet Office reported on Wednesday.

Private sector orders, excluding those for ships and energy equipment, which are closely watched as a leading indicator of companies’ capital spending, came in at ¥874.9 billion after a 2.1% increase in June.

The Cabinet reported that the increase in machine orders is stagnating and is using the same assessment for the third month in a row.

Machine orders from manufacturers fell 5.7% to ¥398.4 billion after a 0.3% decline in June, when the result was supported by a large-scale order. Overall, machine orders from manufacturers remained sluggish compared to April.

Core orders from non-manufacturers rose 7.5% to ¥484.4 billion, a bigger increase than the 2.4% in June.

Transport and postal service providers placed strong orders for communications equipment. Another boost came from orders for computers and other items from the financial and insurance sectors, apparently reflecting active investment in digital technology.

Total machine orders, including those from the public sector and overseas, remained virtually flat at ¥3,053.5 billion.