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Japan Core Machine Orders Contract 4.3%


Core machine orders in Japan fell a seasonally adjusted 4.3 percent on month in September to 686.2 billion yen, the Cabinet Office said on Thursday - falling for the second straight month.

The headline figure missed forecasts for a decline of 2.1 percent following the 3.3 percent contraction in August and the 4.6 percent increase in July.

On a yearly basis, core machine orders shed 7.8 percent - also missing expectations for a 4.9 percent decline following the 6.1 percent fall in the previous month and the 1.7 percent increase in July.

The total number of machinery orders, including those volatile ones for ships and from electric power companies, saw a gain of 9.6 percent on month and a fall of 7.8 percent on year in September to 1,810.6 billion yen.

Manufacturing orders added 2.8 percent on month and lost 12.7 percent on year to 286.8 billion yen in September, while non-manufacturing orders gained 1.3 percent on month but lost 4.7 percent on year to 435.7 billion yen.

Government orders surged 22.4 percent on month and 29.3 percent on year to 263.8 billion yen. Orders from overseas were flat on month and down 18.4 percent on year to 626.4 billion yen. Orders from agencies collected 4.0 percent on month but lost 3.6 percent on year to 84.7 billion yen.

For the third quarter of 2012, core machine orders were down 1.1 percent on quarter and 4.6 percent on year to 2,145.6 billion yen.

The forecast for the fourth quarter of 2012 suggests a gain of 5.0 percent on quarter and 7.6 percent on year.

Also on Thursday:

• Japan posted a current account surplus of 503.6 billion yen in September, the Ministry of Finance said, below forecasts for a surplus of 761.3 billion yen but up from 454.7 billion yen in August. The headline figure was down 68.7 percent on year, also missing forecasts for a decline of 52.7 percent following the 4.2 percent increase in the previous month.

The trade deficit came in at 471.3 billion yen, up from the 644.5 billion yen shortfall a month earlier. Exports were down 10.5 percent on year to 5.104 trillion yen, while imports added an annual 4.5 percent to 5.575 trillion yen.

• Overall bank lending in Japan was up 1.1 percent on year in October, the Bank of Japan said, standing at 398.768 trillion yen. That was in line with forecasts and down from the 1.2 percent increase in September.

Including trusts, bank lending added an annual 0.9 percent to 460.677 trillion yen, unchanged from the previous month. Loans from foreign banks dropped 14.4 percent on year to 2.124 trillion yen following the 15.7 percent contraction.

by RTTNews Staff Writer

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