Japan's core machinery orders, a leading indicator of capital spending, rose for the second straight month in July but fell short of expectations.
Core machinery orders rose 3.5 percent on month, below expectations for a 4.0 percent rise in a Reuters poll and down from an 8.8 percent rise in June, government data showed on Wednesday.
On a year-on-year basis machinery orders rose 1.1 percent, better than expectations for a 0.6 percent rise and up from a 3 percent decline in June.
"[While] we had expected a 5 percent increase month-on-month today's result is not pessimistic," said Junko Nishioka, chief Japan economist, RBS Securities Japan. "Japanese manufacturers are retrieving a growth trend in the second half of this year."