Consensus outlook for Mace News
0850 JST (2350 GMT/1950 EDT Tuesday, June 16) The Cabinet Office releases April machinery orders.
Mace News median: core orders -0.3% m/m (range: -2.0% to +6.5%) vs. Mar -9.4%; +9.9% y/y (range: +8.5% to +17.4%) vs. Mar +5.9%
By Chikafumi Hodo
TOKYO (MaceNews) – Japan’s core machinery orders, a key leading indicator of business investment in equipment and software, are expected to edge down on the month in April while extending their year-on-year gains to a fifth consecutive month as corporate appetite for capital spending remained resilient despite geopolitical uncertainty stemming from war in the Middle East.
Capital investment related to semiconductors is expected to remain active in April amid growing expectations of expanding demand for artificial intelligence technologies. Machine tool orders also posted a sharp increase during the month, providing support for core machinery orders.
Core machinery orders are seen falling 0.3% on the month in April after falling 9.4% a month earlier. The March decline partly reflected a payback from the 13.6% surge recorded in February, when one-off large-ticket deals boosted orders. In March, the Cabinet Office maintained its assessment that machinery orders are “showing signs of a pickup.”
On a year-over-year basis, core machinery orders are expected to rise 9.9% in April after increasing 5.9% in March. Orders rose 24.7% in February, 13.7% in January and 16.8% in December.