| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Month over Month | 1.5% | -1.8% to 4.5% | 3.0% | -0.6% |
| Year over Year | 6.8% | 1.4% to 9.1% | 7.6% | 4.4% |
Highlights
Key points:
--Japanese core machinery orders, the key leading indicator of business investment in equipment and software, posted their first increase in three months in June, up 3.0% on the month (consensus +1.5%), led by continued solid demand for computers in a move to digitize operations amid widespread labor shortages. It followed a slight 0.6% dip in May, a 9.1% plunge in April and a 13.0% surge in March.
--In the April-June quarter, the core measure edged up 0.4% on quarter after rising 3.9% in January-March and rebounding 2.3% in October-December. It was much firmer than the official projection of a 2.1% drop.
--The Cabinet Office forecast that core orders would slip back 4.0% on quarter in the third quarter. It maintained its assessment for the seventh consecutive month, saying, Machinery orders are showing signs of a pickup.
--From a year earlier, core orders, which track the private sector and exclude volatile orders from electric utilities and for ships, marked their ninth consecutive gain, up 7.6% (consensus +6.8%), following a 4.4% rise the previous month.
--Japanese core machinery orders, the key leading indicator of business investment in equipment and software, posted their first increase in three months in June, up 3.0% on the month (consensus +1.5%), led by continued solid demand for computers in a move to digitize operations amid widespread labor shortages. It followed a slight 0.6% dip in May, a 9.1% plunge in April and a 13.0% surge in March.
--In the April-June quarter, the core measure edged up 0.4% on quarter after rising 3.9% in January-March and rebounding 2.3% in October-December. It was much firmer than the official projection of a 2.1% drop.
--The Cabinet Office forecast that core orders would slip back 4.0% on quarter in the third quarter. It maintained its assessment for the seventh consecutive month, saying, Machinery orders are showing signs of a pickup.
--From a year earlier, core orders, which track the private sector and exclude volatile orders from electric utilities and for ships, marked their ninth consecutive gain, up 7.6% (consensus +6.8%), following a 4.4% rise the previous month.
Market Consensus Before Announcement
Key forecast points:
--Japanese core machinery orders, the key leading indicator of business investment in equipment and software, are forecast to post their first increase in three months in June, up 1.5% on the month, led by continued solid demand for computers in a move to digitize operations amid widespread labor shortages. It would follow a slight 0.6% dip in May, a 9.1% plunge in April and a 13.0% surge in March.
--In the April-June quarter, the core measure is forecast by economists to show a slight 0.2% dip on quarter after rising 3.9% in January-March and rebounding 2.3% in October-December, which would be firmer than the official projection of a 2.1% drop.
--Last month, the Cabinet Office maintained its assessment after upgrading it in the November report, saying, “Machinery orders are showing signs of a pickup.”
--From a year earlier, core orders, which track the private sector and exclude volatile orders from electric utilities and for ships, are expected to mark their ninth consecutive gain, up 6.8%, following a 4.4% rise the previous month.
--Japanese core machinery orders, the key leading indicator of business investment in equipment and software, are forecast to post their first increase in three months in June, up 1.5% on the month, led by continued solid demand for computers in a move to digitize operations amid widespread labor shortages. It would follow a slight 0.6% dip in May, a 9.1% plunge in April and a 13.0% surge in March.
--In the April-June quarter, the core measure is forecast by economists to show a slight 0.2% dip on quarter after rising 3.9% in January-March and rebounding 2.3% in October-December, which would be firmer than the official projection of a 2.1% drop.
--Last month, the Cabinet Office maintained its assessment after upgrading it in the November report, saying, “Machinery orders are showing signs of a pickup.”
--From a year earlier, core orders, which track the private sector and exclude volatile orders from electric utilities and for ships, are expected to mark their ninth consecutive gain, up 6.8%, following a 4.4% rise the previous month.
Definition
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.
Description
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.
