Core private-sector machinery orders fell a seasonally adjusted 0.025 percent in July from the previous month, signalling that some companies are still reluctant to increase investment.

The orders, which exclude those for ships and from utilities due to their volatility, fell to ¥777.2 billion from ¥777.4 billion, marking the second consecutive month of decline, the Cabinet Office said Thursday.

Private-sector machinery orders are widely viewed as an indicator of future capital spending, and economists had forecasted an upturn this month.