Japan's core private-sector machinery orders rise 3.8 pct in March

2019-05-22 08:55

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TOKYO, May 22 (Xinhua) -- Core private-sector machinery orders in Japan rose in March from a month earlier, the government said in a report on Wednesday.

According to the Cabinet Office, orders in the recording month increased 3.8 percent from the previous month, with the total orders, excluding those for ships and from utilities because of their volatility, coming to 868.8 billion yen (7.9 billion U.S. dollars).

The latest reading follows a 1.8 percent increase the previous month, the Cabinet Office's data showed.

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, as with March's reading, can boost the economy as it means 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.

The 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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