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Japan core machinery orders fall more than forecast

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Staff Writer | June 12, 2017
Japan's core machinery orders fell 3.1 percent in April, casting doubt on the strength of companies' capital spending and adding to concerns about the country's fragile economic recovery.
Japan core machinery
Asia   The first drop in three months
It also marked the first drop in three months, following a 1.4 percent increase in March, the Cabinet Office data showed.

Though the machinery order data, which excludes ships and orders from the electric power utilities, is highly volatile, it is regarded as an indicator of capital spending in the coming six to nine months.

The reading follows a surprisingly sharp downward revision to first-quarter economic growth, as a reduction in inventories put annualized growth at 1.0 percent, much slower than the initially estimated 2.2 percent.