Core Machinery Orders in Japan

TOKYO (Reuters) – Japan's core machinery orders fell 1.9% in August from the previous month, marking a decline for the second consecutive month. This drop was larger than expected, according to government data released on Wednesday.

This decrease contrasts with forecasts, where economists expected only a 0.1% decline based on a Reuters poll.

On a year-on-year basis, core orders, which are considered a volatile indicator of future capital spending over the next six to nine months, fell 3.4%, compared to a predicted 3.6% growth.

By sector, core orders from manufacturers decreased 2.5% month-on-month in August, while non-manufacturers saw a significant drop of 7.7% during the same period.

The Cabinet Office maintained its assessment regarding machinery orders, indicating that the recovery was currently pausing.