Machinery orders unexpectedly advanced in August, government data showed Wednesday, in a sign that a recovery in earnings may encourage companies to spend on plants and equipment even as the yen surges.
Factory orders rose 10.1 percent from July, the largest increase since December, the Cabinet Office said. The median forecast of 28 economists surveyed by Bloomberg News was for a 3.9 percent decline. The data indicate business investment in three to six months.
Demand in emerging nations is prompting companies including Hitachi Construction Machinery Co. to increase production. Still, economists are forecasting the economy will contract this quarter and Bank of Japan Gov. Masaaki Shirakawa indicated Wednesday he's prepared to expand a new ¥5 trillion fund aimed at stimulating domestic credit.