WAM
14 Jul 2025, 11:12 GMT+10
TOKYO, 14th July, 2025 (WAM) -- Japan's core machinery orders fell 0.6 percent month-over-month to 913.5 billion in May 2025.
The decline was significantly smaller than April's sharp 9.1 percent drop and better than market expectations for a 1.5 percent fall.
The decrease was driven by the manufacturing sector, where orders slipped 1.8 percent to 448.5 billion. Notable declines were seen in chemical and chemical products (-38.7 percent), business-oriented machinery (-29.3 percent), and pulp, paper, and paper products (-18.5 percent).
In contrast, non-manufacturing orders rose 1.8 percent to 479.3 billion, supported by strong gains in mining and quarrying of stone & gravel (91.5 percent), real estate (76.5 percent), and finance & insurance (16.7 percent).
Year-over-year, private-sector machinery orders increased 4.4 percent in May, down from April's 6.6 percent gain but still above forecasts of 3.4 percent. Core machinery orders are viewed as a key leading indicator of capital spending over the next six to nine months.
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