Japan’s Core Machinery Orders Rebound in July, Overseas Orders Rise - Forex News by FX Leaders
Japan's Core Machinery Orders Rebound in June, Overseas Orders Rise

Japan’s Core Machinery Orders Rebound in July, Overseas Orders Rise

Posted Thursday, September 10, 2020 by
Arslan Butt • 1 min read

Core machinery orders in Japan are beginning to improve, recovering in July after a steep decline; however, the outlook for capital spending remains bleak on account of the reigning uncertainties due to coronavirus pandemic. Core machinery orders rose by 6.3% MoM in July after falling by 7.6% in the previous month.

The figure even beat economists’ forecast, which was for a reading of +1.9%. Manufacturers reported a 5% rise in their orders and non-manufacturers saw a growth of 3.4% in their orders.

On an annual basis, core machinery orders were 16.2% less in July 2020 than from the same period a year ago. The rate of decline was slightly lesser than economists’ expectations, which were for a 18.3% reduction.

On a more encouraging sign indicating possible economic recovery, overseas orders picked up for the first time in five months during July, rising by 13.8% MoM. This increase points to an improvement in external demand, a crucial aspect for the recovery of Japan’s export-oriented economy.

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