Japan Machine Orders Fall by Record in Spending Caution Sign

By Toru Fujioka and Chikako Mogi

Japan’s machinery orders fell the most on record in May, suggesting that companies remain cautious about deploying record cash reserves into investment.
Core orders, a leading indicator of capital spending, dropped 19.5 percent from April, the Cabinet Office said today in Tokyo. The slide, the biggest in data back to 1987, was larger than forecast by all 23 economists surveyed by Bloomberg News. The median projection was for a 0.7 percent gain.

Today’s data highlight the difficulty for Prime Minister Shinzo Abe in steering the world’s third-largest economy through the aftermath of a sales-tax increase in April. Abe needs companies to pour some of their 232 trillion yen ($2.3 trillion) cash stockpile into investments that could strengthen a recovery and spur inflation.
“While this a very volatile indicator, today’s figure is still ugly,” said Hiroshi Shiraishi, senior economist at BNP Paribas SA in Tokyo. “It will take a while for Japan to achieve a self-sustained recovery as consumer spending will slow on the sales-tax hike, exports are weak and capital spending is only gradually recovering.”
The Topix (TPX) index of stocks swung between gains and losses after three days of declines, sliding 0.3 percent as of 10:31 a.m. in Tokyo. The yen strengthened 0.1 percent against the dollar to 101.53.
The government downgraded its assessment of machine orders. The slide in May was largely due to a 46 percent drop in external orders after a 71 percent gain the previous month, a government official said.
The number of large orders, which can cause volatile results, fell to two in May from four in April, the government said.
Large companies across all industries plan to raise capital spending 7.4 percent this fiscal year through March, a Bank of Japan report showed this month. (Bloomberg)

MTN News Alert
DMON
To receive our mobile newspaper on MTN delivered on your phone, text SAWD to 4900 at N50 per week or SAMD to 4900 at N150 per month.
For information on press releases, photos, promotional events and adverts, call or send text to 08173460599 or 08094208271or send email to: info@sundiatapost.com

Leave a Reply

Leave a Reply

Your email address will not be published. Required fields are marked *

*

Sundiata Post Media Ltd.

Address: 3rd Floor Office Suite, Bayelsa State Guest House, Plot 1038, Shehu Shagari Way, Maitama, Abuja, Nigeria.
Tel: +234(0)92900705, +234(0)8173460599
Whatsapp: +234(0)8053069436
BBM PIN: 5619150D
Email: info@sundiatapost.com
Website: www.sundiatapost.com

Enugu Regional Office: SW 1 New Haven Shopping Mall, Enugu, Enugu State, Nigeria.
Tel: +234(0)7062582838
https://twitter.com/sundiatapost/

London Office: 18 Belgrave Avenue, Wd18 7UE, Watford, United Kingdom.
Tel: +447417554143
Dubai Office: PAU Management Suite, Level 23 - Boulevard Plaza Tower 2, Emaar Boulevard,
P. O. Box 124342, Dubai, UAE.
Tel: +971 4 4096849 | Fax: +971 4 409 6850
About Us

SundiataPost is published by Sundiata Post Media Limited, Sundiata Post is Nigeria’s most authoritative online newspaper and ranks among the top five online news platforms in Nigeria.

Guild of Corporate online publishers
ACCREDITED MEMBER
A Glance at Our Advert Rate.

Inside Pages

Size In Pixels - Amount

120×180 - N27,967.50

300×100 - N24,695

Text Link - N11,275

More Details info

About Us | Contact Us | Privacy Policy | Terms of Use | Advert Rate