Core machinery orders fell a seasonally adjusted 9.1 percent in May from the previous month, the sharpest fall in nearly two years, government data showed Thursday, adding to signs of a slower recovery in capital spending by firms.
The value of the private-sector orders fell for the first time in three months to ¥692.9 billion, the Cabinet Office said. The rate of decline was the sharpest since August 2008, when orders dropped 10.2 percent, and was much larger than the average forecast of a 2.5 percent fall among economists in a survey.
The core orders, a key indicator of future business spending, exclude orders for ships as well as those from electric utilities, which are normally seen as volatile.