Core machine orders in Japan plummeted 19.5 percent on month in May, the Cabinet Office said on Thursday - worth 685.3 billion yen.
Marking the highest monthly decline on record, the headline figure catastrophically missed forecasts for an increase of 0.7 percent following the 9.1 percent contraction in April.
On a yearly basis, machine orders tumbled 14.3 percent - also well shy of expectations for a gain of 10.1 percent following the 17.6 percent spike in the previous month.
Following the release of the data, the Japanese government cut its assessment of core machine orders.
The total number of machinery orders, including those volatile ones for ships and from electric power companies, plunged 30.5 percent on month and 2.6 percent on year in May to 2,173.5 billion yen.
Manufacturing orders dropped 18.6 percent on month and 3.8 percent on year to 283.5 billion yen in May, while non-manufacturing orders lost 17.8 percent on month and 19.9 percent on year to 427.0 billion yen.
Government orders surged 22.4 percent on month and 9.5 percent on year to 363.7 billion yen. Orders from overseas tumbled 45.9 percent on month and 0.2 percent on year to 873.7 billion yen. Orders from agencies added 2.2 percent on month and 9.0 percent on year to 100.9 billion yen.
For the second quarter of 2014, core machine orders are forecast to have risen 0.4 percent on quarter and 4.5 percent on year to 2,558.6 billion yen.
Also on Thursday:
• An index measuring prices for domestic corporate goods was up 0.2 percent on month in June, the Bank of Japan said - standing at 106.3. The headline figure beat expectations for an increase of 0.1 percent, although it was down from 0.3 percent in May.
On a yearly basis, prices gained 4.6 percent - also topping forecasts for 4.5 percent and up from 4.4 percent in the previous month.
Export prices were down 0.1 percent on month and 1.1 percent on year, the data showed, while import prices added 0.1 percent on month and 0.6 percent on year.
• An index measuring activity among tertiary industries was up a seasonally adjusted 0.9 percent on month in May, the Ministry of Economy, Trade and Industry said - coming in at 98.2.
The headline figure was well shy of forecasts for an increase of 1.7 percent following the downwardly revised 5.7 percent decline in April (originally -5.4 percent).
Industries that saw an increase in activity included retail sales, transportation, amusement services, real estate and utilities. Industries that slowed in May included scientific research and financial services.
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