In August, Japan experienced a 1.9% decline in core machinery orders compared to the previous month, marking a second consecutive month of decrease, as per government data released on Wednesday. The reduction exceeded economists’ expectations, predicting a marginal 0.1% drop, as revealed in a Reuters survey.
On a yearly basis, the highly volatile core orders, considered a pivotal gauge of forthcoming capital expenditure in the next six to nine months, contracted by 3.4%, contrasting with a projected 3.6% growth, according to the Cabinet Office.
The breakdown by industry exhibited a 2.5% decline month-on-month in core orders from manufacturers in August, while those from non-manufacturers plummeted by 7.7% during the same period.
Despite these numbers, the Cabinet Office maintained its appraisal of machinery orders unchanged, indicating that the recovery phase is currently at a standstill.
