Japan pummelled by more bad news; October machinery orders down 6.4%

Tokyo

THE litany of bad news on Japan's economy continued on Thursday in the run-up to next Sunday's general election with data showing that core machinery orders have turned down quite sharply following the slump in personal consumption after an April hike in the national sales tax.

A 6.4 per cent drop in machinery orders in October compared with September - the first such fall in five months - suggests that weak capital spending is likely to weigh on the world's third largest economy, along with stagnant personal consumption, in coming months, analysts said.