Core private-sector machinery orders rose a seasonally adjusted 0.6 percent in May from the previous month for the third consecutive monthly gain, led by strong demand from the manufacturing sector, the government said Thursday.
The value of orders, widely regarded as a leading indicator of future capital spending, totaled ¥907.6 billion, the highest since June 2008. The orders exclude those for ships and from utilities because of their volatility.
The unexpected rise, which contrasts with market projections of around a 5 percent decline, followed a 3.8 percent increase in April. The government maintained its basic assessment, saying the orders have been "picking up," after upgrading the view in April.