Japan Core Machinery Orders Down 11 Pct in Nov.

Tokyo, Jan. 19 (Jiji Press)–Japan’s seasonally adjusted core machinery orders in November last year fell 11.0 pct from the previous month, marking the first decline in three months, following large-scale orders in October, the Cabinet Office said Monday. Private-sector orders excluding those for ships and power equipment, closely watched as a leading indicator of corporate capital spending, came to 883.9 billion yen. The pace of decline was the sharpest since the 12.2 pct fall recorded in April 2020 and worse than the median forecast of a 5.2 pct drop in a Jiji Press survey of 17 economic research institutes. The government agency kept its basic assessment unchanged, saying that machinery orders are showing signs of picking up. Of the private-sector orders in November, those from manufacturers dropped 10.8 pct to 398.2 billion yen, down for the second consecutive month, due in part to a fall in demand from nonferrous metals producers and electrical machinery makers. Orders from nonmanufacturers decreased 10.7 pct to 492.9 billion yen, down for the first time in two months, following large-scale orders for railroad cars in October. The decline also reflected a slowdown in digital-related investment, including spending on computers, in the finance and insurance sector. Overall machinery orders, including those from the public sector and abroad, rose 8.5 pct to 3,351.9 billion yen. END [Copyright The Jiji Press, Ltd.]