Japan August machinery orders may fall

TOKYO, Oct 07 (Reuters): Japan's machinery orders were expected to fall in August after the previous month's spike, a Reuters poll found, although corporate capital spending was seen likely to be steady despite Sino-US trade tensions.

The poll of 17 economists found that core machinery orders, a volatile data series regarded as an indicator of capital spending in the coming six to nine months, were seen down 4.0 per cent in August after they grew 11.0 per cent in July.

From a year earlier, core machinery orders, which exclude those for ships and from electric power utilities, were expected to rise 1.6 per cent in August after a 13.9 per cent gain in July.

"As the Bank of Japan's tankan survey showed, firms' willingness to increase capital spending is strong, so capital expenditure is expected to stay solid for a while," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.

The latest BOJ tankan survey showed subdued confidence but highlighted solid corporate capex plans, driven by demand for refurbishments and boosting investment in robotics and automation to cope with labour shortages.

Analysts say trade friction between the United States and China has not yet had any visible impact on the Japanese economy.