Published: Friday October 9, 2009 MYT 8:38:00 AM
Updated: Friday October 9, 2009 MYT 10:30:49 AM

Japan said Friday machinery orders up 0.5%(update)

TOKYO: Japan's core machinery orders, a closely watched indicator of corporate capital spending, rose 0.5 percent in August, the government said Friday.

Core private sector machinery orders was 668.1 billion yen ($7.6 billion), according to the Cabinet Office's monthly report released Friday.

The figure excludes often-volatile orders from shipbuilders and electric power companies.

The figure undershot Kyodo News agency's average market forecast of a 2.3 percent rise.

But it marked a slight improvement from a 9.3 percent decline in July to the lowest level since the government started compiling data in 1987.

Marked improvements in orders at auto parts makers and steel companies contributed to the climb.

The latest result adds to signs that while Japanese companies are starting to boost production amid an emerging recovery in global demand, they remain reluctant to spend.

The central bank's survey of business sentiment showed that companies plant to slash capital expenditures by 10.8 percent this fiscal year.

Companies also said they still have too capacity and too many workers.

Overall orders fell 1.9 percent, as foreign orders dropped 15.7 percent and government orders fell 7.2 percent. - AP

Earlier report

TOKYO: Japan says its core machinery orders, a closely watched indicator of corporate capital spending, rose 0.5 percent in August.

The Cabinet Office says in a monthly report released Friday that core private sector machinery orders, which exclude volatile orders from electric power companies and shipbuilders, was 668.1 billion yen ($7.6 billion).

The figure, however, was smaller than a Kyodo News forecast of a 2.3 percent rise, though it was an improvement from the 9.3 percent decline in July - the lowest since the government started compiling data in 1987. - AP

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