The nation's core private-sector machinery orders rose a seasonally adjusted 5.5 percent in March from the previous month, following a 9.2 percent decline in February, the government said Thursday.

The orders, widely viewed as a leading indicator of future capital spending, totaled ¥895.1 billion, the Cabinet Office said. The orders exclude those for ships and from utilities because of their volatility.

The government left unchanged its basic assessment of core machinery orders, saying they are showing "signs of picking up."

The figures are closely watched as Prime Minister Shinzo Abe's government sees business investment — which accounts for some 15 percent of the country's gross domestic products — as a pillar of economic growth.

The orders for the January to March period increased 6.7 percent from the previous quarter, but the Cabinet Office estimates core orders will contract 3.5 percent in the three months through June.

In the full fiscal year that ended in March, the orders increased 4.1 percent from the previous year to ¥10.18 trillion, marking the third consecutive year of growth.

In March, orders from the manufacturing sector increased 19.7 percent to ¥384.2 billion after a 30.6 percent plunge in February, while those from the nonmanufacturing industry fell 6.9 percent to ¥494.4 billion, down for the first time in four months.

Total orders, including those from the domestic public sector and abroad, rose 15.8 percent to ¥2.6 trillion.

Overseas demand for Japanese machinery, an indicator of future exports, rose 28.5 percent to ¥933.7 billion.