Japan Core Machinery Orders Rise 8.7 Pct in April

Tokyo, June 17 (Jiji Press)–Japan’s core machinery orders rose 8.7 pct in April from the previous month after seasonal adjustment thanks to robust orders related to semiconductors, the Cabinet Office said Wednesday. Private-sector orders excluding those for ships and power equipment, closely watched as a leading indicator of corporate capital spending, totaled 1,098.5 billion yen. Orders for oil-related machinery were sluggish, but it is unknown whether the war in the Middle East affected the category, a Cabinet Office official said. The agency kept its basic assessment unchanged, saying that machinery orders are showing signs of picking up. Orders from manufacturers climbed 5.1 pct to 513.5 billion yen, lifted by growth in electric and communication equipment amid strong demand for semiconductors, and large-scale engine orders from the shipbuilding sector. Nonmanufacturers’ orders jumped 6.7 pct to 570.1 billion yen, their highest level since June 2019, because of a surge in the transportation and mailing sector and growth in the construction and real estate sectors. Overall machinery orders, including those from the public sector and abroad, went up 3.4 pct to 4,038.8 billion yen, the highest on record dating back to April 2005. END [Copyright The Jiji Press, Ltd.]