Japan's core machinery orders missed estimates for a rise m/m in May, falling instead.

Japan Core Machinery Orders (May 2024) -3.2% m/m (vs. expected +0.8%)

  • this is a volatile indicator
  • core orders exclude ship buildings and repairs as well as electricity power generation
  • its used as an indicator to capital spending in six to nine months.
  • The Cabinet Office compiles the data

The Cabinet Office cut its view on machinery orders, saying there are signs that a pick-up is stalling.

Capital spending has been a few bright spots in Japan, with demand for machinery and technology to enhance labour productivity in the face of chronic labour shortages.

Japan factory 31 March 2023