Thursday, 14th January 2010
In Business In Japan,
Machinery orders fall in Japan
Levels of machinery orders in Japan have fallen to a 23 year low, new figures have shown.
According to a report published by the government's cabinet office, machinery orders in Japan have fallen by 10.6 per cent and taken orders to their lowest level since May 1987.
The fall is largely unexpected, analysts said, but Bloomberg noted that the drop could signal that while Japan may have somewhat recovered from its deepest recession since the end of the second world war, the recovery has not moved from exporters into other sectors.
"Japans economy is on a recovery trend led by exports, but that hasnt spread through a wide range of businesses, resulting in the weakness in non-manufactures," economist at Tokyo's Nomura Securities Ryota Sakagami told the source.
Japan is also currently seeing very low levels of inflation and analysts recently predicted that this is likely to see interest rate levels in the country remain low for some time.
Wri tten by Mark Smith.