A cabinet office building in Chiyoda Ward, Tokyo
17:23 JST, August 19, 2024
TOKYO (Jiji Press) — Seasonally adjusted core orders for machinery in Japan rose 2.1% in June from the previous month, the Cabinet Office reported Monday.
Private sector orders (excluding those for ships and energy equipment), which are closely watched as a leading indicator of corporate capital spending, rose to ¥876.1 billion.
Core orders rose for the first time in three months, beating the median estimate of a 0.9% increase in a Jiji Press poll of 17 economic research institutes.
The Cabinet maintains its assessment that the increase in machine orders has come to a standstill.
Manufacturers’ main machine orders fell 0.3% to ¥422.4 billion, reflecting a decline in orders for semiconductor manufacturing equipment.
Orders from non-manufacturers rose 2.4% to ¥450.4 billion, boosted by large orders for cranes and other transportation equipment from wholesale and retail.
Total machinery orders, including those from the public sector and overseas, fell 6.0% to ¥3,053.1 billion.
For April-June, core machinery orders fell 0.1% from the previous quarter to ¥2,620.2 billion. The Cabinet Office attributed the decline to weak demand for communications equipment used in mobile phone base stations. Orders are expected to rise 0.2% in July-September.
“Capital investment willingness is likely to increase mainly among companies related to domestic demand,” predicted Takeshi Minami of Norinchukin Research Institute Co.
