Japan Core Machinery Orders Up 9.7 Pct in June

Tokyo, Aug. 19 (Jiji Press)–Japan’s seasonally adjusted core machinery orders in June rose 9.7 pct from the previous month, the Cabinet Office said Wednesday. The Cabinet Office maintained its basic view that machinery orders are showing signs of picking up. The private-sector orders excluding those for ships and power equipment, closely watched as a leading indicator of corporate capital spending, grew to 1,055.8 billion yen. Machinery orders from manufacturers jumped 19.9 pct to 524.1 billion yen, boosted by an increase of more than threefold in orders from the nonferrous metal industry, which placed a large nuclear power-related order. Core orders from nonmanufacturers climbed 4.5 pct to 540.2 billion yen, driven by increased investment for digitalization in the finance and insurance sectors. Total machinery orders, including those from the public sector and overseas, inched up 0.4 pct to 4,439 billion yen, the highest level since the start of data that can be compared under the current format in April 2005. The rise reflected overseas demand growth thanks to higher semiconductor demand. Core machinery orders for April-June grew 0.2 pct from the previous quarter to 3,116.2 billion yen, up for the third consecutive quarter. Core orders for July-September are projected to rise 4.9 pct, supported by chip-related demand, a Cabinet Office official said. END [Copyright The Jiji Press, Ltd.]