Data released by the Cabinet Office on Wednesday (May 16) showed that core machinery orders in Japan fell 2.8% month-on-month and 1.1% year-on-year in March, indicating a slowdown in capital spending after increases in the previous two months.
The market median forecast was for a 3.5% month-on-month decrease and a 4.4% year-on-year increase in core machinery orders in March. The data also showed that core machinery orders rose 0.9% quarter-on-quarter in the first quarter. Manufacturers surveyed by the Cabinet Office expect core machinery orders to rise 2.5% quarter-on-quarter in the fourth quarter.
The government maintained its assessment of machinery orders, stating that the data shows a trend of moderate growth. Core orders are highly volatile and are considered a measure of capital spending.