Core machinery orders in Japan surged a seasonally adjusted 8.8 percent in July compared to the previous month, the Cabinet Office said on Wednesday. That was sharply higher than analyst expectations for a 2.0 percent monthly increase following the 1.6 percent gain in June.
On an annual basis, core machinery orders surged 15.9 percent - again topping forecasts for an 8.1 percent gain after shedding 2.2 percent in the previous month.
Government orders eased 1.3 percent on month, while overseas orders added 2.6 percent and agency orders fell 1.8 percent. Private sector orders collected 6.4 percent on month.
Overall machinery orders, which include the volatile ones for ships and from power companies, were up 5.7 percent on month.
As a result of the data, the Japanese government maintained its assessment on machinery orders, saying that they continue to pick up.
Also on Wednesday, the Ministry of Finance said that Japan posted a current account surplus of 1.6759 trillion yen in July, up 26.1 percent on year. That beat expectations for a surplus of 1.534 trillion yen after showing a surplus of 1.0471 trillion yen in June.
Imports rose 15.7 percent on year to 4.747 trillion yen, while exports added an annual 24.7 percent to 5.663 trillion yen. The trade surplus was 916.1 billion yen, up 110.0 percent on year.
The adjusted current account surplus came in at 1.4636 trillion yen, again beating expectations for a surplus of 1.3629 trillion yen after posting a surplus of 1.3621 trillion yen in June.
Also, the Bank of Japan said that M2 money stock and CDs in Japan were up 2.8 percent on year in August, standing at 778.9 trillion yen. That was higher than analyst expectations for a 2.6 percent annual increase following the 2.7 percent gain in July.
M3 money stock rose 2.1 percent on year to 1,079.4 trillion yen. That also beat forecasts for a 1.9 percent increase following the 2.0 percent jump in the previous month. It also included a 2.1 percent annual gain in M1.
L money stock climbed an annual 0.4 percent to 1,444 trillion yen. Seasonally adjusted, L declined 1.4 percent.
Finally, bank lending in Japan declined 2.0 percent on year in August, the BoJ said, coming in at 394.2 trillion yen. That follows a 1.9 percent annual contraction in July.
Including trusts, bank lending was down 1.9 percent on year to 456.7 trillion yen. That followed a 1.8 percent decline on year in the previous month. Adjusted lending was down an annual 1.7 percent - the same rate of decline as in July.
Lending from foreign banks plunged 18.3 percent on year to 3.822 trillion yen after falling 16.9 percent a month earlier.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.