According to the Cabinet Office, the orders, excluding those for ships and utilities because of their volatility, increased 6.8 percent in August from a month earlier to total 981.5 billion yen (8.7 billion U.S. dollars).
Machinery orders are a key advance indicator for corporate capital spending in Japan and the government uses the data to predict the strength of business spending in a six to nine month period ahead.
Increased capital expenditure here has helped sustain the economy with Japanese companies producing more machinery to meet rising demands from overseas markets.
Such business investment accounts for roughly 15 percent of Japan's gross domestic product (GDP).
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.