Japan's machinery orders up 3.9%

Japan's core machinery orders rose 3.9 percent in November from the previous month to JPY 732.1 billion (USD 8.2 billion) for the second straight monthly increase, the government said Wednesday. The figure followed a 2.6 percent gain in October, according to data released by the Cabinet Office. Core private-sector orders, which exclude volatile demand from electric utilities and for ships, are considered a leading indicator of corporate capital spending in the next three to six months, which accounts for 15 percent of Japan's gross domestic product (GDP). By industry, orders by manufacturers grew 3.9 percent month-on-month in November, while those from non-manufacturers climbed 6.2 percent. Overseas demand, an indicator of future Japanese exports, jumped 17.0 percent for the fastest growth since August 2011. Despite the rise, the Cabinet Office maintained its overall assessment of machinery orders, saying, "The orders remain on a weak trend." Japan's GDP shrank in the July-September period at an annualized rate of 3.5 percent for a second consecutive quarter of contraction, indicating that the country has slipped into a recession due to sluggish exports and external demands.