Japan Core Private Machinery Orders Firmer But Outlook Troubling

May 13, 2005
Japanese core private-sector machinery orders rose sharply and unexpectedly in March but the key measure of corporate spending pointed to a slowdown ahead, official figures showed May 13.   The Cabinet Office said core private sector orders in March rose ...

Japanese core private-sector machinery orders rose sharply and unexpectedly in March but the key measure of corporate spending pointed to a slowdown ahead, official figures showed May 13. The Cabinet Office said core private sector orders in March rose 1.9% from February, confounding expectations for a fall of 0.9 % drop. Year-on-year, core orders increased 13.2% in March.

However, going forward, the government said orders would fall 3.1% in the second quarter compared with the three months to March, clouding growth prospects for the world's second-largest economy. Core private-sector machinery orders, which exclude volatile orders from electric utilities and for ships, are viewed as a leading indicator of corporate capital spending.

"Although the headline figure seems robust, it is because of the change (in March) in the method of calculating seasonal factors," said Taro Saito, senior economist at NIL Research Institute. "The figure for the January-March quarter tells you that machinery orders were almost flat while the forecast for the April-June quarter is weak, which is worrisome," he said.

In the January-March quarter, core private-sector machinery orders rose 0.7% from the three months to December. For March alone, orders placed by the manufacturing sector rose 2.1 % month-on-month and 16.1% from a year earlier while orders from non-manufacturers increased 1.3 % and 10.7%, respectively.

Copyright Agence France-Presse, 2005

Popular Sponsored Recommendations

Global Supply Chain Readiness Report: The Pandemic and Beyond

Sept. 23, 2022
Jabil and IndustryWeek look into how manufacturers are responding to supply chain woes.

Empowering the Modern Workforce: The Power of Connected Worker Technologies

March 1, 2024
Explore real-world strategies to boost worker safety, collaboration, training, and productivity in manufacturing. Emphasizing Industry 4.0, we'll discuss digitalization and automation...

How Manufacturers Can Optimize Operations with Weather Intelligence

Nov. 2, 2023
The bad news? Severe weather has emerged as one of the biggest threats to continuity and safety in manufacturing. The good news? The intelligence solutions that build weather ...

How Organizations Connect and Engage with Frontline Workers

June 14, 2023
Nearly 80% of the 2.7 billion workers across manufacturing, construction, healthcare, transportation, agriculture, hospitality, and education are frontline. Learn best practices...

Voice your opinion!

To join the conversation, and become an exclusive member of IndustryWeek, create an account today!