0850 JST (2350 GMT/1950 EDT Wednesday, March 18) The Cabinet Office releases January machinery orders.
Mace News median: core orders -11.0% m/m (range: -13.9% to -5.5%) vs. Dec +19.1%; +9.7% y/y (range: +6.2% to +16.0%) vs. Dec +16.8%
By Chikafumi Hodo
TOKYO (MaceNews) – Japan’s core machinery orders, a key leading indicator of business investment in equipment and software, are expected to decline for the first time in two months on the month in January in reaction to large orders for chemical devices from refineries and for nuclear power facilities from the non-ferrous metals industry (nuclear fuel producers) in the previous month, which boosted month-on-month orders to the highest level in nearly 19 years.
Core machinery orders are projected to fall 11.0% on the month in January after soaring 19.1% in the previous month, which was also supported by ongoing services-sector demand for computers amid an automation and digitization drive aimed at alleviating labor shortages. On a year-on-year basis, core orders, excluding those from electric utilities and for ships, are expected to rise 9.7%, after gaining 16.8% in December.
In January, shipments of capital goods for domestic demand are expected to fall, while machine tool orders for domestic demand are expected to increase. Nevertheless, reflecting the expected reaction to December’s surge, core machinery orders in January are projected to decline on a monthly basis.
In December, the Cabinet Office maintained its assessment that “machinery orders are showing signs of a pickup” for the second straight month. The government office upgraded its view in October from “pickup stalling,” marking the first upward revision since November 2024.