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Japan June core machinery orders fall 2.7% month/month

Nissan Plant, Japan
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Nissan Plant, Japan

Japan's core machinery orders fell 2.7 percent in June from the previous month, government data showed on Tuesday, a sign that the government's reflationary policies have yet to encourage companies to boost capital spending.

The fall in core orders, which excludes those of ships and electric power utilities, compared with economists' median projection for a 7.2 percent decline and followed a 10.5 percent jump in the previous month, the Cabinet Office data showed.

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Companies surveyed by the Cabinet Office forecast that core orders will fall 5.3 percent in July-September from the previous quarter after rising 6.8 percent in April-June, which was the first increase in five quarters.

Compared with a year earlier, core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, increased 4.9 percent in June against a 2.4 percent gain expected by economists.

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The Cabinet Office said machinery orders are gradually picking up. Previously, it had said they were showing signs of a slow pickup.