Japan’s Core Machinery Orders Record Fastest Monthly Growth in November

Core machinery orders in Japan surged to a record monthly high during November 2019, signaling an uptick in business spending.

Japan's Core Machinery Orders Record Fastest Monthly Growth in November

Core machinery orders in Japan surged to a record monthly high during November 2019, signaling an uptick in business spending. According to Cabinet Office data released earlier today, Japan’s core machinery orders rose 18% MoM during November. This highly volatile data is a key indicator of capital spending over the next six to nine months.

November’s figures showed the fastest pace of growth on a monthly basis ever recorded and also marked the first gain in core machinery orders since June 2019. An increase in orders for railway cars, transport equipment and thermal hydraulic motors helped boost November’s data.

Economists had expected a 3.2% MoM gain in core machinery orders after it registered a 6% decline during October. November’s gains not only beat economists’ forecast but more than made up for October’s losses as well.

Strong capital spending is likely to be a strong support for the Japanese economy, especially in Q2 and Q3 2019, in the face of weak domestic and overseas demand, driven by the continued US-China trade war. Japan’s economy is likely to face more headwinds following the hike in national sales tax which was implemented in October, which further dented household spending.

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Arslan Butt
Index & Commodity Analyst
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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