Thursday, Feb. 19, 2026
0850 JST (2350 GMT/1850 EST Wednesday, Feb. 18) The Cabinet Office releases December machinery orders.
Mace News median: core orders +3.2% m/m (range: +1.0% to +5.0%) vs. Nov -11.0%; +1.0% y/y (range: -0.5% to +4.4%) vs. Nov -6.4%
By Chikafumi Hodo
TOKYO (MaceNews) – Japan’s core machinery orders, a key leading indicator of business investment in equipment and software, are expected to rise from the previous month for the first time in two months in December, supported by solid capital spending sentiment and persistent demand for computers as firms digitalize and automate workplaces to ease labor shortages.
Core machinery orders are forecast to increase 3.2 percent from the previous month in December, rebounding from an unexpectedly sharp 11.0 percent drop in November. In November, orders were weighed down by declines in nuclear power-related orders from nonferrous metals and electric machinery producers, as well as weaker demand for train cars and engines from transport firms.
On a year-on-year basis, core orders, excluding those from electric utilities and for ships, are expected to rise 1.0 percent in December, after falling 6.4 percent a month earlier. The November decline marked the first annual drop in 14 months.
In November, the Cabinet Office maintained its assessment that “machinery orders are showing signs of a pickup.” The government upgraded its view in October for the first time since the November 2024 report.
For the October-December quarter, orders are projected to rise 2.7 percent from the previous quarter after falling 2.1 percent in July-September. That would mark the first quarterly increase in two quarters and exceed the Cabinet Office’s preliminary forecast of a 0.2 percent rise.