Japan Machinery orders for October 2024: +2.1% m/m (expected +1.2%)

Japan’s core machinery orders for October 2024 have jumped back after a slowing trend in recent months (see notes below).

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Japan’s core machinery orders, a key indicator of capital spending, have shown a declining trend in recent months:

• July 2024: Orders unexpectedly fell by 0.1% month-on-month, contrary to economists’ expectations of a 0.5% increase. On a year-on-year basis, orders grew by 8.7%, surpassing the forecasted 4.2% growth.

• August 2024: Orders declined by 1.9% month-on-month, marking the second consecutive monthly decrease and exceeding the anticipated 0.1% drop. Year-on-year, orders fell by 3.4%, against an expected 3.6% growth.

• September 2024: Orders decreased by 0.7% month-on-month, marking the third consecutive month of decline.

This downward trend reflected cautious corporate sentiment amid global economic uncertainties, particularly concerns over China’s economic slowdown and persistent cost pressures and how this impacts Japan.

This article was written by Eamonn Sheridan at www.forexlive.com.