Japan Core Machinery Orders Down 5.5 Pct in Jan.

Tokyo, March 19 (Jiji Press)–Japan’s seasonally adjusted core machinery orders in January fell 5.5 pct from the previous month, after a spike driven by large-scale orders the previous month, Cabinet Office data showed Thursday. The private-sector orders excluding those for ships and equipment used at power companies, closely watched as a leading indicator of corporate capital spending, came to 982.4 billion yen. The government agency kept its basic assessment intact, saying that machinery orders are showing signs of picking up. Many private think tanks expect corporate capital spending to remain firm, but concerns linger over an escalation of tensions over Iran. “If (the military conflict) drags on, there is a risk that appetite for capital spending will shrink at once,” said Takeshi Minami of Norinchukin Research Institute Co. Machinery orders from manufacturers dropped 12.5 pct to 435.8 billion yen. In the previous month, the sector was boosted by large-scale orders from the nonferrous metal industry and the oil and coal sector. Core orders from nonmanufacturers rose 6.8 pct to 563.2 billion yen, driven by orders for computers and road vehicles including trailers. Total machinery orders, including those from the public sector and abroad, declined 2.0 pct to 3,942.1 billion yen. END [Copyright The Jiji Press, Ltd.]