Japan Dec core machinery orders rise 4.2% on month

[TOKYO] Japan's core machinery orders rose 4.2 per cent in December and companies expect orders to accelerate further in January-March, government data showed on Wednesday, in an encouraging sign that capital expenditure will support economic growth.

The month-on-month rise in core orders, which exclude those of ships and electric power utilities, compared with a 4.7 per cent rise forecast by economists. It followed a 14.4 per cent decline in November, Cabinet Office data showed.

Companies surveyed expect their core machinery orders to rise 8.6 per cent in the January-March quarter, after increasing 4.3 per cent in October-December.

Compared with a year earlier, core orders in December fell 3.6 per cent, against the median estimate of a 3.1 per cent decline.

REUTERS