Japanese Core Machinery Orders Decline for Third Consecutive Month in September

According to data released by the Cabinet Office, core machinery orders in Japan declined for the third consecutive month during September. Core machinery orders declined by 2.9% in September and by 3.5% in Q3 2019. Economists were expecting a 0.9% increase in this figure instead.

Japan’s export-oriented economy has been suffering on account of the prolonged US-China trade war, driving down capital spending among manufacturers as orders from China slide lower. Amid the global economic slowdown and trade tensions, the economic growth in Japan remained supported by strong domestic demand and capital spending so far. However, the steep decline in core machinery orders spells trouble for the economic growth as it is a key indicator of capital spending among manufacturers.

Japan is due to release its GDP figures later this week, and economists are expecting the GDP to have slowed down to +0.8% in Q3 from +1.3% in Q2 2019. On the release of this news, the Japanese yen has failed to show any reaction so far. At the time of writing, USD/JPY is trading somewhat steady around 109.14.

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Arslan Butt
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Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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