Core private sector machinery orders expanded a seasonally adjusted 10.7 percent in October from the previous month for the second straight monthly increase, the government said Wednesday. The figure suggests a recovery in capital investment.

The value of orders, widely regarded as a leading indicator of future capital spending, totaled ¥903.8 billion, the Cabinet Office said. The orders exclude those for ships and from utilities because of their volatility.

The government upgraded its basic assessment of core machinery orders for the first time in six months, saying they are showing "signs of picking up." Last month, it said they were "at a standstill."