Japan Core Machinery Orders Up 4.2 Pct in Sept.

Tokyo, Nov. 19 (Jiji Press)–Japan’s seasonally adjusted core machinery orders in September rose 4.2 pct from the previous month, marking the first growth in three months, thanks to a sizable increase in orders from manufacturers that reflected large-scale projects, the Cabinet Office said Wednesday. The private-sector orders excluding those for ships and power equipment, closely watched as a leading indicator of corporate capital spending, stood at 927.8 billion yen. The government agency kept its basic assessment of machinery orders unchanged from the previous month, saying that the pickup in machinery orders is at a standstill. Although additional tariffs imposed by U.S. President Donald Trump’s administration on automobile imports from Japan were lowered through bilateral negotiations, orders from the automobile and auto parts sector have not returned to the levels seen around the beginning of this year, a Cabinet Office official said. In September, orders from manufacturers surged 23.3 pct to 515.2 billion yen, led by large-scale orders from the chemicals industry and the general-purpose and production machinery sector. Orders from nonmanufacturers dropped 8.7 pct to 428.3 billion yen, reflecting a significant decrease in orders from the information service sector as a result of seasonal adjustment. Overall machinery orders, covering those from the public sector and abroad, climbed 3.9 pct to 3,313.7 billion yen. For July-September, the second quarter of fiscal 2025, core machinery orders declined 2.1 pct from the previous quarter, the first drop in a year, affected by lower demand for computers in the telecommunications industry. In October-December, core orders are forecast to edge up 0.2 pct. END [Copyright The Jiji Press, Ltd.]