TOKYO, Feb. 17 (Xinhua) -- Japan's core private-sector machinery orders increased 3.6 percent in December from a month earlier, marking the third successive month of increase, the government said in a report on Thursday.
The orders, excluding those for ships and from electricity utilities due to their volatility, totaled 932.4 billion yen (8.1 billion U.S. dollars) and came on the heels of a 3.4 percent increase logged in November, the Cabinet Office said.
The office raised its assessment on machinery orders for a second straight month, stating that machinery orders were "picking up." In November, it said the orders were showing "signs of picking up."
From manufacturers, machinery orders climbed 8.0 percent to reach 479.8 billion yen, following a 12.9 percent growth booked a month earlier. The rise in orders in December was driven by orders for devices used in nuclear reactors from nonferrous metal and electric machinery makers, the office said.
Non-manufacturers' orders slipped 0.1 percent in the recording period, however, to 465.4 billion yen. This was owing to declining orders from information service, finance and insurance industries, the government's report showed.
Meanwhile, orders from overseas fell 3.5 percent, the data showed, after a 0.7 percent rise was booked in November.
The Cabinet Office also said, on a quarterly basis, core orders leapt 6.5 percent to 2.7 trillion yen in the October-December period.
Looking ahead, however, a government official said the orders are set to fall 1.1 percent in the January-March period, as those in the non-manufacturing sector are holding out on making new investments due to uncertainty regarding the local and global situations of the COVID-19 pandemic.
Core orders, for the whole of 2021, jumped 6.8 percent to 10.2 trillion yen, marking the first increase in three years and largest expansion since 2011, following an 8.4 percent tumble in 2020.
Machinery orders are a key advance indicator for corporate capital spending and the government uses the data to predict the strength of business spending in a six to nine month period ahead.
A rise in capital expenditure here can boost the economy as Japanese companies are producing more machinery to meet rising demands from overseas markets.
Such business investment accounts for roughly 15 percent of Japan's gross domestic product.
Types of machinery included in the monthly government survey comprise engines and turbines, heavy electrical machinery, electronic and communication equipment, industrial machinery, machine tools, railway rolling stock, road vehicles, aircraft, ships, water crafts, as well as sub types in those categories.
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