Japan’s core machinery orders increased 13.4% in January from the previous month, the government declared Thursday, signaling that firms may be willing to increase their capital expenditures even after a sales tax hike in April.
The huge hike on month follows a record decline in orders in December, but still came out close to twice the assumed hike of 7.5% as surveyed by The Wall Street Journal and the Nikkei.
Unadjusted core orders also jumped 23.6% from the year-earlier month in another sign of the strength of demand for new equipment, suggesting that companies may be in the upbeat about the state of the economy after the hike in the sales tax than had been expected.
Machinery orders are watched closely as an indicator of corporate capital investment six months ahead. Core orders exclude those from electric power firms and those for ships, which are often a source of volatility in the overall data due to their huge sizes.
Japan’s corporate investment has been on a recovery state since a year ago, but the speed of recovery has been subdued, forestalling the kind of self-sustaining economic development envisaged by Prime Minister Shinzo Abe under his “Abenomics” policy platform.
The material has been provided by InstaForex Company – www.instaforex.com
Japan’s core machinery orders increased 13.4% in January from the previous month, the government declared Thursday, signaling that firms may be willing to increase their capital expenditures even after a sales tax hike in April.
The huge hike on month follows a record decline in orders in December, but still came out close to twice the assumed hike of 7.5% as surveyed by The Wall Street Journal and the Nikkei.
Unadjusted core orders also jumped 23.6% from the year-earlier month in another sign of the strength of demand for new equipment, suggesting that companies may be in the upbeat about the state of the economy after the hike in the sales tax than had been expected.
Machinery orders are watched closely as an indicator of corporate capital investment six months ahead. Core orders exclude those from electric power firms and those for ships, which are often a source of volatility in the overall data due to their huge sizes.
Japan’s corporate investment has been on a recovery state since a year ago, but the speed of recovery has been subdued, forestalling the kind of self-sustaining economic development envisaged by Prime Minister Shinzo Abe under his “Abenomics” policy platform.
The material has been provided by InstaForex Company – www.instaforex.com
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