Japan’s core machinery orders fell 3.6 percent in May from the previous month, government data showed on Monday, in a sign capital spending lacks momentum.
The surprise fall in the core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, undershot the 1.7 percent increase expected by economists in a Reuters poll. It followed a 3.1 percent drop in April, Cabinet Office data showed.
Compared with a year earlier, core orders, which exclude ships and orders from electric power utilities, grew 0.6 percent in May, versus the 7.7 percent growth expected by economists and
the 2.7 percent rise in April.