November machine orders excluding volatile ones for ships and those from electric power companies declined a seasonally adjusted 5.1 percent on the month. The decline followed an increase of 4.1 percent in October but a drop of 3.3 percent in September. However, for the year, orders were up 3.6 percent. Manufacturing orders jumped 9.8 percent after declining 1.4 percent in October and 3.3 percent in September. Nonmanufacturing orders (excluding volatile orders) tumbled 9.4 percent after increasing 4.6 percent the month before and sliding 0.9 percent in September.
The total value of machinery orders received by 280 manufacturers operating in Japan increased 20.6 percent in November from the previous month on a seasonally adjusted basis. This was the third consecutive month increase.
Machine Orders are the total value of new private-sector purchase orders placed with manufacturers for machines excluding volatile items such as ships and utilities. It is a leading indicator of production. Analysts consider the data an indicator of capital spending. Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders.
It is a leading indicator of production. Rising purchase orders signal that manufacturers will increase activity as they work to fill the orders. The importance of machinery orders cannot be overstated given the economy's dependence on exports. The purpose of these data is to get a picture of machinery manufacturers' order books and to collect basic material for analyzing the direction of the economy through an early understanding of trends in capital investment in machinery.
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