October core machinery orders up

JIJI

Core machinery orders in October rose 0.6 percent from the previous month after seasonal adjustment, led by an 11.5 percent surge in those from nonmanufacturers, the Cabinet Office said Wednesday.

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 ¥807.2 billion, exceeding ¥800 billion for the third straight month.

The 0.6 percent growth, which followed a 2.1 percent decrease in September, matched the median estimate among 23 economic research institutes surveyed by Jiji Press. Their estimates ranged from a fall of 2.6 percent to a rise of 3.8 percent.

Based on the result, the Cabinet Office upgraded its assessment, saying that machinery orders show signs of a moderate increase, compared with the previous view that orders are “picking up.”

As of the end of September, core orders were forecast to drop 2.1 percent in October-December from the previous quarter.

In October, orders from manufacturers declined 0.2 percent, down for the first time in six months.

Orders from four manufacturing sectors, including information and communications equipment and oil and coal products, were down, while those from 11 sectors, including electrical machinery, shipbuilding and automobiles, were up.