Alexa
  • Directory of Taiwan

Japan core machinery orders rise 5.5 percent in April

Japan core machinery orders rise 5.5 percent in April

Japanese machinery orders _ a key barometer of corporate capital spending _ rebounded in April following two straight months of big declines, the government said Tuesday.
Core machinery orders, which exclude often volatile orders from electric power firms and those for ships, rose 5.5 percent in April from the previous month, the Cabinet Office said.
That's after an 8.3 percent drop in March and a 12.3 percent plunge in February.
The indicator is considered an important gauge of business investment in the coming months. The April bounce, while beating expectations for a 2.6 percent boost by economists surveyed by Dow Jones Newswires, was not enough to reverse an overall declining trend in machinery orders amid an economic slowdown and weak corporate sentiment.
As such, the Cabinet Office kept its March assessment of the indicator, describing orders as "weakening."
Core orders from manufacturers were up 1.9 percent, while those from the non-manufacturers climbed 8.8 percent. The overall numbers were padded by large gains in orders from sectors including petroleum and coal products, transport equipment and nonmetallic mineral products.
Compared with a year earlier and without seasonal adjustments, core orders rose 0.5 percent in April, the data showed.
Japanese Economy Minister Hiroko Ota said that the data suggest Japanese capital spending remains weak.
"The orders for April rose higher than expected, but they are just a rebound from a consecutive fall in the two previous months. (The investment situation) needs careful monitoring," she said at a regular press conference Tuesday.
However, Ota said she doesn't expect machinery orders to remain stagnant in the future.
"While the U.S. economy is slowing down, the Asian economies remain healthy, which is a plus (for machinery orders)."


Updated : 2021-07-24 23:31 GMT+08:00