Data from Japan, core machinery order for Nov 2018

Comes in flat on m/m, for a miss

  • expected 3.0% m/m, prior 7.6%

Comes in at 0.8% y/y for a beat

  • expected 0.2% y/y, prior 4.5%

The result will be read as a weakening in business investment, the m/m is quite a large miss (of an admittedly volatile indicator). Core machine orders are used as a guide to capex six to nine months out.

more to come