January 16, 2020

Japan Machinery Orders

October machinery orders data suggest less than robust capital investment.

Published monthly by the Cabinet Office. Updated till the month of November 2019 (published on January 16th, 2020).

Recent data trend

Core machinery orders, a leading indicator of domestic capital expenditure activity in Japan, expanded by 7.6% month on month in October. While the expansion is welcome, its strength was insufficient to make up for the much larger decline of -18.3% month on month it suffered in September. Judging by the machinery orders, there seems to be no meaningful upturn in the private capital expenditure trend in Japan. Machinery orders statistics is becoming a poor indicator of private capital i...

To read more, please become a our Standard subscriber.

Start a subscription with 30-days Free Trial

If you are already a JMA subscriber please

Brief overview of “Machinery orders”:

Machinery orders track orders received by 280 machinery makers in Japan. The results are published monthly, with a quarterly survey for orders outlook published together with March, June, September and December results. Orders are categorized by the source of orders, namely the public sector, private domestic sectors, overseas as well as agencies that supply machinery to SMEs.

Orders from private domestic sectors are considered to be an important leading indicator for domestic capital investment. As orders from power generators and shipping industries tend to be extremely volatile, private domestic orders excluding these two industries are considered as core machinery orders. It is important to note that even the core machinery orders are still highly volatile, oscillating from month to month. In the recent years, the core machinery orders tend to lead private capital expenditures by 2-3 months.

For more information, visit the official government page

Machinery Orders-Quarterly

Source: Cabinet Office, JMA.

The Next Release Date: February 19th, 2020.

Suggested Pages

Japan Gross Domestic Product

The Japanese economy grew by 0.4% quarter on quarter (QoQ) in the July-September 2019, marking the 4th consecutive quarter of positive growth. The year on year growth of 1.7% is the highest since the

View Page

Industrial Production Japan

Industrial production continued its plunge in November 2019, falling by 0.9% month on month (MoM), following a steep 4.5% MoM decline in October. The Ministry of Economy, Trade and Industry (METI), t

View Page

Consumption Activity Index

Real consumption activity grew by 0.2% month on month (MoM) in January 2019.The rate of growth was rather unremarkable, but the news was a positive surprise, given the 2.3% MoM drop in retail sales i

View Page

Retail Sales Japan

In March 2019, retail sales expanded by 0.2% month on month (MoM) after a seasonal adjustment, after growing by 0.4% MoM in February. The expansion in these two months looks weak though, in view of t

View Page