Japan's core machinery orders surge 9.7 per cent
10 Aug 2009
Japan's core private sector machinery orders, a key indicator of corporate business investment, surged 9.7 per cent in June from the previous month to 732.8 billion yen. Core orders, exclude often volatile orders from shipbuilders and electric power companies, according to Japan's cabinet office report.
Japan's June core private sector machinery orders showed the first gain in four months and the biggest rise since April 2008 and mark a recovery from the fall of 3 per cent in May and 5.4 per cent in April.
The surge in the June's core private sector machinery orders was mainly from big one-time purchases in the non-ferrous metals industry, in addition to an increase in orders from the steel industry and transport equipment firms.
Though the orders for the month recorded a small gain, but could not reverse the 4.9-per cent declinr in the entire April-June quarter compared to the previous quarter.
However, the weak recovery in global demand and the surge in demand from China for Japanese cars, electronics goods and machinery have helped Japan's exports to show signs of recovery. Japanese manufacturers increased their production and consequently factory output rose 2.4 per cent in June for the first time in four months after touching a record low the previous month.
The cabinet office manufacturers survey report forecast that core private-sector machinery orders, in the next six to nine months is expected to fall 8.6 per cent in the July-September quarter compared to the April-June quarter.
The other data released were the Japan's June's current account surplus which rose 144 per cent to 1.153 trillion yen ($11.8 billion), the first rise in 16 months (See: Japan's June current account surplus surges 144.4 per cent).
Bank of Japan data showed that Japanese bank lending rose 2.2 per cent in July to Y402.6 trillion from a year earlier, but was slower compared to 2.5 per cent recorded in June.
