Japan’s Cabinet Office has released details of the value of manufacturing machinery orders received by companies operating in Japan.
In October, the figure is up 3.3% from September on a seasonally adjusted basis. Private-sector machinery orders, excluding those for ships and power generation, increased a seasonally adjusted by 4% in October.
Private sector capital spending is just an indicator, and a rather volatile one, of the direction of the economy. The Japan government is hoping that capital spending will support sustainable growth.
Capital investments fell in the July-September quarter for the first time in nearly four years and in the third quarter the Japanese economy grew much slower than initially estimated driven lower by global economic uncertainty.