Core private-sector machinery orders plunged a seasonally adjusted 14.4 percent in November from the previous month for the first drop in three months, the government said Thursday. The trend reflects continued caution by firms over making capital investments.
The orders, widely regarded as a leading indicator of future capital spending, totaled ¥773.8 billion. The orders exclude those for ships and from utilities because of their volatility.
The weak outcome may highlight nervousness among businesses toward fresh investment amid persistent concern about a slowdown in China, one of the biggest destinations for Japanese exports. The size of the fall was the third-largest since comparable data became available in April 2005, the Cabinet Office said.