Consensus outlook for Mace News
Wednesday, August 19, 2026
0850 JST (2350 GMT/1950 EDT Tuesday, August 18) The Cabinet Office releases June and April-June machinery orders.
Mace News median: core orders +8.6% m/m (range: +6.5% to +11.7%) vs. May -12.4%; +11.0% y/y (range: +8.9% to +15.1%) vs. May -1.9%
By Chikafumi Hodo
TOKYO (MaceNews) – Japan’s core machinery orders, a key leading indicator of business investment in equipment and software, are expected to rebound in June amid a growing global trend of building data centers and chipmaking facilities related to the development of artificial intelligence technology.
After an expected setback in May, core orders are forecast to rise 8.6% on the month in June, following a 12.4% drop in May. The May order amount fell to a six-month low of 962.0 billion yen after an unexpected increase in April, when orders rose 8.7% to a record high of 1.099 trillion yen.
The May decline was led by lower orders for engines from shipyards, as well as cranes and conveyors from general machinery makers and mining firms. Orders for computers also pulled back at electrical equipment producers, general machinery makers and transport firms.
The three-month moving average fell 4.8% in May, but the Cabinet Office maintained its assessment that machinery orders are “showing signs of a pickup.” On a year-on-year basis, core machinery orders are also expected to rebound, rising 11.0% in June after falling 1.9% in May, the first decline in six months.
For the April-June period, core machinery orders are projected to post a modest 0.1% quarter-on-quarter decline, following a 6.4% rise in January-March. The official projection for the second quarter was a 0.3% increase.