Japan’s machinery orders rebound in sign of capex recovery

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Businessmen walk past heavy machinery at a construction site in Tokyo’s business district, Japan, January 16, 2017. REUTERS/Toru Hanai/File Photo

  • Core orders +0.9% mth/mth vs forecast +3.1%
  • Core orders +11.1% yr/yr vs forecast +15.7%
  • Govt keeps view orders showing signs of pick-up

TOKYO, Sept 15 (Reuters) – Japan’s core machinery orders rose in July after a dip the previous month, a sign corporate spending is perking up despite the wider hit to the economy from the pandemic.

However, the weaker-than-expected rebound may add to concerns about the strength of Japan’s recovery, which has largely relied on manufacturers and other export-oriented businesses as curbs dampen domestic consumption.

Core machinery orders, a highly volatile data series regarded as a leading indicator of capital spending in the next six to nine months, rose 0.9% in July from the previous month, weaker than the 3.1% gain seen by economists in a Reuters poll.

It followed a 1.5% dip in…

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