Japan's machinery orders log fastest rise since 2000
Thursday, 11 February 2010
TOKYO, Feb 10 (AFP): Japan's core machinery orders rose at the fastest pace in nearly a decade in December, data showed Wednesday, indicating firms are boosting spending on plants and equipment as the economy recovers.
The core orders, a leading indicator of corporate capital investment, jumped 20.1 per cent in December from the previous month, reversing an 11.3 per cent drop marked in November, the government said.
The rise was the sharpest since a 20.8 per cent expansion in August 2000 and the third fastest on records dating back to 1987, it said.
It was also better than the average market forecast for an increase of around 8.0 per cent in the core orders, which exclude particularly volatile demand from power companies and for ships.
"The data show a improvement in business for export companies is beginning to result in higher capital investment," said Naoki Murakami, chief economist at Monex Securities.
The Japanese economy will continue to recover this year from its worst recession in decades, Murakami said.
Japan crawled out of a severe year-long recession in 2009 but a recovery remains fragile with deflation, high public debt and weak domestic demand all concerns for policymakers.
Gross domestic product (GDP) figures for the final quarter of 2009, due next week, are expected to show annualised growth of 1.0 per cent, analysts predict.
The core orders, a leading indicator of corporate capital investment, jumped 20.1 per cent in December from the previous month, reversing an 11.3 per cent drop marked in November, the government said.
The rise was the sharpest since a 20.8 per cent expansion in August 2000 and the third fastest on records dating back to 1987, it said.
It was also better than the average market forecast for an increase of around 8.0 per cent in the core orders, which exclude particularly volatile demand from power companies and for ships.
"The data show a improvement in business for export companies is beginning to result in higher capital investment," said Naoki Murakami, chief economist at Monex Securities.
The Japanese economy will continue to recover this year from its worst recession in decades, Murakami said.
Japan crawled out of a severe year-long recession in 2009 but a recovery remains fragile with deflation, high public debt and weak domestic demand all concerns for policymakers.
Gross domestic product (GDP) figures for the final quarter of 2009, due next week, are expected to show annualised growth of 1.0 per cent, analysts predict.