Jan. core machinery orders up 8.2%

March 14, 2018

Tokyo- Japan's seasonally adjusted core machinery orders in January were up 8.2 percent from the previous month, with orders from both manufacturers and non-manufacturers rising, the Cabinet Office said Wednesday.

The increase, the largest since the 12.2 percent jump in January 2016, marked a rebound from a 9.3 percent drop in December.

The core orders, or private-sector orders excluding those for ships and power equipment, closely watched as a leading indicator of corporate capital spending, came to 872.3 billion yen in January.

The Cabinet Office kept its assessment unchanged, saying that machinery orders are showing signs of pickup.

Of the private-sector orders, those from manufacturers climbed 9.9 percent, led by brisk demand from chipmaking equipment and other electric machinery makers as well as chemical firms.

Orders from non-manufacturers increased 4.4 percent, thanks to robust orders from real estate companies and the transport and postal service sector.

Overall machinery orders, including those from the public sector and abroad, grew 4.5 percent to 2,474.5 billion yen. Orders from abroad increased 11.6 percent, while those from the public sector went down 18.7 percent. Jiji Press