Core private-sector machinery orders fell a seasonally adjusted 1.8 percent in April from the previous month to 874.9 billion yen, the government said Tuesday, indicating capital spending may slow later in the year.
The drop followed a 3.8 percent increase in March, and represents an unadjusted 4.3 percent rise from a year earlier for the fourth straight year-on-year increase, the Cabinet Office's Economic and Social Research Institute said.
Private-sector machinery orders are considered a leading indicator of corporate capital spending six to nine months ahead. The core orders exclude orders for ships and from electric power companies, which tend to be volatile due to their huge size.