| Consensus | Consensus Range | Actual | Previous | |
|---|---|---|---|---|
| Month over Month | -3.5% | -5.5% to -0.5% | -4.6% | 3.0% |
| Year over Year | 5.2% | -1.5% to 7.4% | 4.9% | 7.6% |
Highlights
JAPAN JULY CORE MACHINE ORDERS -4.6% M/M (JUNE +3.0%); MEDIAN FORECAST -3.5% (RANGE -5.5% TO -0.5%)
JAPAN JULY CORE MACHINE ORDERS +4.9% Y/Y (JUNE +7.6%); 10TH STRAIGHT RISE; MEDIAN FORECAST +5.2% (RANGE -1.5% TO +7.4%)
JAPAN GOVT KEEPS VIEW: MACHINE ORDERS SHOWING SIGNS OF PICKUP
JAPAN JULY CORE MACHINE ORDERS MANUFACTURING SECTOR +3.9% M/M (JUNE -8.1%); FIRST RISE IN 4 MONTHS
JAPAN JULY CORE MACHINE ORDERS NON-MANUFACTURING SECTOR -3.9% M/M (JUNE +8.8%); FIRST DROP IN 3 MONTHS
JAPAN JULY MACHINE ORDER M/M FALL LED BY PULLBACK IN ORDERS FOR COMPUTERS FROM FINANCIAL, REAL ESTATE, COMMUNICATIONS INDUSTRIES
JAPAN JULY CORE ORDERS MANUFACTURING RISE LED BY SOLID DEMAND FOR CRANES, CONVEYORS FROM GENERAL/PRODUCTION MACHINE MAKERS
JAPAN JULY CORE MACHINE ORDERS +4.9% Y/Y (JUNE +7.6%); 10TH STRAIGHT RISE; MEDIAN FORECAST +5.2% (RANGE -1.5% TO +7.4%)
JAPAN GOVT KEEPS VIEW: MACHINE ORDERS SHOWING SIGNS OF PICKUP
JAPAN JULY CORE MACHINE ORDERS MANUFACTURING SECTOR +3.9% M/M (JUNE -8.1%); FIRST RISE IN 4 MONTHS
JAPAN JULY CORE MACHINE ORDERS NON-MANUFACTURING SECTOR -3.9% M/M (JUNE +8.8%); FIRST DROP IN 3 MONTHS
JAPAN JULY MACHINE ORDER M/M FALL LED BY PULLBACK IN ORDERS FOR COMPUTERS FROM FINANCIAL, REAL ESTATE, COMMUNICATIONS INDUSTRIES
JAPAN JULY CORE ORDERS MANUFACTURING RISE LED BY SOLID DEMAND FOR CRANES, CONVEYORS FROM GENERAL/PRODUCTION MACHINE MAKERS
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 drop in two months, down 3.5% on the month, following a stronger-than-expected 3.0% increase in June. Demand for computers remains strong in a move to digitize operations amid widespread labor shortages.
Last month, 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, are expected to mark their 10th consecutive gain, up 3.0%, following a solid 7.6% 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 drop in two months, down 3.5% on the month, following a stronger-than-expected 3.0% increase in June. Demand for computers remains strong in a move to digitize operations amid widespread labor shortages.
Last month, 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, are expected to mark their 10th consecutive gain, up 3.0%, following a solid 7.6% 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.
