Asian Economic News

Japan Core Machine Orders Climb 10.5% In May

Core machine orders jumped a seasonally adjusted 10.5 percent on month in May to 799.2 billion yen, the Cabinet Office said on Thursday - rising for the third time in four months.

The headline figure blew away forecasts for an increase of 1.9 percent following the 8.8 percent plunge in April.

On a yearly basis, core machine orders spiked 16.5 percent - also shattering expectations for a gain of 3.3 percent following the 1.1 percent contraction in the previous month.

The total number of machinery orders, including those volatile ones for ships and from electric power companies, jumped 12.0 percent on month and 18.1 percent on year in May to 2,269.6 billion yen.

Manufacturing orders added 3.8 percent on month but lost 6.2 percent on year to 297.1 billion yen in May, while non-manufacturing orders surged 25.4 percent on month and 34.3 percent on year to 560.7 billion yen.

Government orders climbed 44.8 percent on month and 51.1 percent on year to 359.9 billion yen. Orders from overseas jumped 10.3 percent on month and 17.1 percent on year to 906.6 billion yen. Orders from agencies added 22.7 percent on month but lost 1.6 percent on year to 91.8 billion yen.

For the second quarter of 2013, core machine orders are forecast to have fallen 1.5 percent on quarter and 7.7 percent on year.

by RTTNews Staff Writer

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