Japan government report’s the country’s core private-sector machinery orders to rise 3.8 percent in October from the previous month. The same has been attributed to an increase in orders from non-manufacturers.
According to the Cabinet Office, the orders, which exclude those for ships and from electricity utilities due to their volatility, came to a total of 870.8 billion yen ($7.7 billion) in October. This is the first time in three months of such as record rise of machinery orders.
However, the office maintained its assessment that machinery orders were showing “signs of delay in their recovery,” after a downward revision in August. Such an assessment is seen as a leading indicator of corporate capital spending.
According to a government official, it was commented that although the country saw growth in a single month, the three-month moving average of the orders showed only a slight increase of 0.4 percent.
Summary of machinery orders in October –
• In the reporting month, the machinery orders from nonmanufacturers rose 16.5 percent to 469.3 billion yen, following an 11.7 percent decline in the previous month.
• Such a rise has been attributed to a big-ticket order for railcars from the transportation sector.
• In the reporting month, the orders from a wide range of industries among non-manufacturers increased, with 10 out of 12 sectors marking a rise.
• Orders from the manufacturing sector fell 15.4 percent to 393.8 billion yen in October, compared to a 24.8 percent gain in September, when large orders from chemical and chemical product companies were made.
• Overseas machinery orders increased 17.2 percent, while those from the public sector jumped 46.4 percent. Both increased for the first time in three months.
• In the reporting month, the total orders were up 24.9 percent to 3.0 trillion yen, following a 10.4 percent decrease in September.
According to the official, the growth in orders may in return reflect a drop in new coronavirus infections in the country.
The number of COVID-19 cases fell dramatically after peaking in late August. Thus prompting the government to fully lift its state of emergency covering the capital and some other prefectures on Oct. 1.