Core private-sector machinery orders in July rose 3.5 percent from the previous month to ¥771.7 billion after seasonal adjustment, led by a one-off increase in big orders from the chemical industry, the government said Wednesday.
Core orders, or private-sector orders excluding those for ships and power equipment, are regarded as a leading indicator of business investment, which Prime Minister Shinzo Abe has seen as a key component of his plan to revitalize the economy and end nearly two decades of deflation.
The figures for July follow an 8.8 percent climb in core orders the previous month but come on the back of a record plunge of 19.5 percent in May and 9.1 percent drop in April, indicating that the overall pace of recovery is slowing.