Core private-sector machinery orders rose an unexpected 2.9 percent in March, adding to evidence that business investment has been recovering moderately, the government said Monday.
The Cabinet Office forecast relatively strong growth in the orders, a precursor of corporate capital spending in the country, for the April-June period. But analysts say the March result should not spark too much optimism as the negative impact from the March 11 earthquake and tsunami will continue for the foreseeable future.
The core orders, which exclude those for ships as well as from utilities due to their volatility, grew for the first time in two months to ¥777.6 billion. The seasonally adjusted result came in much stronger than the average market forecast of a 9.0 percent decrease in a Kyodo News survey.