Core machine orders in Japan contracted a seasonally adjusted 2.8 percent on month in March to a value of 746.3 billion yen, the Cabinet Office said on Tuesday - falling for the first time in three months.
The headline figure beat forecasts for a contraction of 3.5 percent following the downwardly revised 2.8 percent increase in February and the 0.7 percent gain in January.
On a yearly basis, core machine orders fell 1.1 percent - well shy of expectations for a gain of 4.4 percent after climbing 8.9 percent in February and the 5.7 percent gain in January.
The total number of machinery orders, including those volatile ones for ships and from electric power companies, saw an increase of 4.1 percent on month and 8.1 percent on year in March to 2,209.4 billion yen.
Manufacturing orders shed 8.4 percent on month and 4.8 percent on year to 317.4 billion yen, while non-manufacturing orders fell 3.9 percent on month and added 1.7 percent on year to 418.0 billion yen.
Government orders surged 40.0 percent on month and 49.4 percent on year to 302.8 billion yen. Orders from overseas dropped 14.4 percent on month and 10.0 percent on year to 784.9 billion yen, and orders from agencies spiked 21.5 percent on month and 34.1 percent on year to 112.6 billion yen.
For the second quarter of 2012, core machine orders are expected to add 2.5 percent on quarter but fall 3.3 percent on year to 2,317.8 billion yen.
For the first quarter of 2012, core machine orders were up 0.9 percent on quarter and 3.3 percent on year to 2,262.0 billion yen. Total machine orders were up 7.1 percent on quarter and 3.2 percent on year to 6,729.2 billion yen.
For the fiscal year 2011 that ended in March, core machine orders jumped 6.2 percent on year and total machine orders added 2.7 percent.
Also on Wednesday, an index measuring tertiary industry activity was down a seasonally adjusted 0.6 percent on month in March, the Ministry of Economy, Trade and Industry said, standing at 98.6. That missed forecasts for a contraction of 0.4 percent following the flat reading in February.
Industries that declined included information and Communications, living-related and amusement services, wholesale and retail trade and accommodations. Industries that moved higher include finance, insurance, scientific research, medical care, welfare and real estate.
For comments and feedback: editorial@rttnews.com