Wednesday, 11th August 2010
In Business In Japan,
Japan's machinery orders rise less than expected
Orders for machinery in Japan rose by 1.6 per cent in June this year, new figures show, a less than expected increase and one which could suggest a slowing of economic recovery.
According to a survey by Dow Jones Newswires and Japanese business daily the Nikkei, published by AFP, many economists predicted rises more like 5.5 per cent.
While the rise may not have been as high as some hoped, it sill follows a drop of more than nine per cent the month before.
Core machinery orders are seen as a key indicator of the state of the Japanese economy as they come from the private sector and can be used to predict corporate spending over the coming months.
The Wall Street Journal noted that in Japan, business investment like this accounts for 15 per cent of the country's annual economic output.
Speaking to the source about the new data, economist at BNP Paribas in Tokyo Hiroshi Shiraishi said: "Even though capital expenditures remain on a mild recovery trend, it is unlikely to accelerate."
Written by Kimberley Homer