Sharpest drop in Japanese machine orders in 6 months in August

The Japanese Cabinet Office announced that machinery orders in August fell by the most in six months due to pressure from the global economic slowdown. In addition, the depreciation of the yen led to higher import costs and worsened corporate spending trends.

Orders for basic machinery, which fluctuate widely and are an indicator of capital spending over the next six to nine months, fell 5.8% in August from the previous month.

This was the sharpest monthly decline since a 9.8% drop in February.

However, compared with a year earlier, orders received for basic machinery excluding shipbuilding and power supply equipment rose by 9.7% in August.

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