Core Machinery Orders in Japan Unexpectedly Plummet

Forex - Japan's core machine orders unexpectedly fell in September compared to the previous month. Orders were expected to grow in this quarter of the year.

In September, orders decreased by 0.7% compared to the previous month, disappointing economists who had forecasted a median increase of 1.9%, marking a decline for the second consecutive month.

Core orders, considered a significant indicator of capital spending for the next 6 to 9 months and a highly volatile data series, dropped by 4.8% year-on-year.

According to Cabinet Office data, core orders decreased by 8% against an expected increase of 2.2%.

Sectorally, core orders from manufacturers remained flat in September compared to the previous month, while orders from non-manufacturers increased by 1.5% during the same period.

The Cabinet Office stated that it would not change its assessment of machine orders, indicating that the recovery has stalled. It also expects machine orders to rise by 5.7% from the previous quarter between October and December.