Japan's core machinery orders fell 1.4% month-on-month in October

Data from the Cabinet Office of Japan (December 8th) released on Wednesday showed that the monthly rate of core machinery orders in Japan fell by 1.4% in October, which was a two-month decline, highlighting the economic uncertainties that caused companies to be cautious about capital expenditures. attitude.

The previous median estimate of the authoritative media survey was that the core machinery orders for October were expected to fall by 1.0% from the previous month. The monthly rate of core machinery orders fell by 10.3% in September.

The data also showed that Japan’s core machinery orders grew at an annual rate of 7.0% in October, and the market’s expectation was an increase of 7.5%.

The Japanese government has maintained its assessment of machinery orders and said it is recovering.

Since last year, due to the recovery of the economy from the global financial crisis, Japanese companies have been gradually increasing their capital expenditures. However, the strong yen, overseas economic slowdown, and lower profitability are expected to limit companies' subsequent investment in factories and equipment.

The Cabinet Office survey showed that manufacturers expect the core order quarter-to-quarter rate to fall by 9.8% in October-December, which will be the first decline in five quarters.