Japan March core machinery orders fall for 2nd straight month

March core orders -3.9% m/m vs f'cast +0.7%
Core orders -3.5% yr/yr vs f'cast +1.4%
April-June core orders seen to rise 4.6%
TOKYO, May 22 (Reuters) - Japan March core machinery orders fell in March for a second straight month, indicating firms' cautious about capital spending amid worries about the global economic slowdown.
Japan's economy
emerged from recession in the first quarter as a post-COVID consumption rebound offset global headwinds. But tame reading in the machinery orders may cast doubts about the pace of the economic recovery.
Core orders, a highly volatile data series regarded as a barometer of capital expenditure in the coming six to nine months, declined 3.9% in March from the previous month, Cabinet Office data showed on Monday.
That was weaker than the median forecast of a 0.7% advance by economists in a Reuters poll.
Compared with a year earlier, core orders, which exclude volatile numbers from shipping and electric utilities, fell 3.5% in March, according to the data. That was also weaker than a 1.4 percent gain of forecast.
Manufacturers surveyed by the Cabinet Office are expecting core orders to rise 4.6% in April-June, after a 2.6% growth in the previous quarter.
The government kept its view on machinery orders, saying they are "stalling".
Reporting by Kaori Kaneko; Editing by Kim Coghill
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Monday, May 22, 2023 at 12:29 am

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