Japan Core Machinery Orders Down 0.9 Pct in Aug.

Tokyo, Oct. 16 (Jiji Press)–Japan’s seasonally adjusted core machinery orders in August fell 0.9 pct from the previous month, marking a decline for the second straight month, the Cabinet Office said Thursday. The private-sector orders excluding those for ships and equipment used at power utilities, which are closely watched as a leading indicator of corporate capital investment, came to 890 billion yen. The government agency revised down its basic assessment of machinery orders, saying that the pickup in machinery orders is at a standstill. The assessment until July had been that machinery orders were showing signs of picking up for the ninth consecutive month. The downward revision came as U.S. President Donald Trump’s high tariff policy has apparently prompted Japanese companies to postpone capital investment. Orders from the automobile and auto parts sectors, which slumped after the additional U.S. tariffs were imposed, have not returned to the levels seen around the beginning of this year, a Cabinet Office official said, adding that “the recovery is weak.” In August, orders from manufacturers fell 2.4 pct to 418 billion yen, affected by weakness in the general-purpose and production machinery sector. Orders from nonmanufacturers dropped 6.4 pct to 469 billion yen, reflecting a decrease in orders from the leasing industry. Overall machinery orders, including those from the public sector and abroad, jumped 7.3 pct to 3,189.1 billion yen. Overseas orders surged 28.4 pct, led by large-scale orders for telecommunications equipment. END [Copyright The Jiji Press, Ltd.]