Japan’s September machinery orders fall 0.7% month/month

JAPAN’S core machinery orders unexpectedly fell in September from the previous month, government data showed on Monday, although they are expected to grow in the current quarter of the year.

The orders dropped 0.7 per cent in September month-on-month, confounding economists’ median estimates for a 1.9 per cent rise and down for the second straight month.

On a year-on-year basis, core orders, a highly volatile data series seen as a key gauge of capital spending in the coming six to nine months, decreased 4.8 per cent, versus an expected rise of 2.2 per cent, the Cabinet Office data showed.

By sector, core orders from manufacturers was flat in September from a month ago, while those from non-manufacturers rose 1.5 per cent in the same period.

The Cabinet Office left its assessment of machinery orders unchanged, saying the recovery was pausing.

At the same time, it expects machinery orders between October and December to rise 5.7 per cent quarter on quarter. REUTERS