Japan's core private-sector machinery orders up 10.1pc in April

Published: June 11, 2018 12:46:14 | Updated: June 14, 2018 12:52:26

Japan's core private-sector machinery orders increased 10.1 per cent in April from a month earlier, the government said in a report on Monday.

According to the Cabinet Office, the orders, excluding those for ships and utilities because of their volatility, totalled 943.1 billion yen (8.6 billion US dollars) in the recording month, reports Xinhua.

Machinery orders are a key advance indicator for corporate capital spending and the government uses the data to predict the strength of business spending in a six to nine month period ahead.

Increased capital expenditure here has helped sustain the economy with Japanese companies producing more machinery to meet rising demands from overseas markets.

Such business investment accounts for roughly 15 per cent of Japan's gross domestic product.

Types of machinery included in the monthly government survey comprise engines and turbines, heavy electrical machinery, electronic and communication equipment, industrial machinery, machine tools, railway rolling stock, road vehicles, aircraft, ships, water craft as well as sub types in those categories.

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