According to the Cabinet Office, the orders, excluding those for ships and utilities because of their volatility, increased 7.1 percent in March from the previous month, marking the first increase in three months.
The orders totaled 869.46 billion yen (6.78 billion U.S. dollars) in the reporting period, the Cabinet Office said, and maintained its assessment of the orders stating that they were "showing signs of stalling in their recovery."
The current core orders in March came on the heels of a 9.8-percent drop in February when a slump in demand by non-manufacturers weighed heavily.
"While the figure for March showed some pickup following declines in January and February, the three-month moving average was still negative," a government official was quoted as telling a press briefing.
Orders from manufacturers increased 7.1 percent in March to 454.52 billion yen (3.54 billion U.S. dollars), marking the first increase in three months, the office said.
The increase in orders was led by businesses related to nonferrous metals and general-purpose and production machinery, among others, the data showed.
Those from non-manufacturers, excluding those for ships and from power companies, rose 11.0 percent to 430.54 billion yen (3.36 billion U.S. dollars), the Cabinet Office said.
Orders from overseas, seen as an indicator of future exports, fell 14.2 percent to 1.09 trillion yen (8.50 billion U.S. dollars), according to the government data.
Machinery orders are a key advance indicator for corporate capital spending and the government uses this key 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.
A drop in such expenditure can have the reverse effect.
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 subtypes in those categories.