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Thursday, 14th October 2010
In General Japan News,

Japan sees increase in machinery orders

Figures show Japan has seen an increase in machinery orders during August.

The cabinet office reported core machinery orders rose by 10.1 per cent to total 843.5 billion yen (£6.5 billion). It had been predicted that growth would be around four per cent.

It is the third month in a row that orders have increased and it could be a sign that Japan's economy may be heading towards recovery.

However, cabinet office parliamentary secretary Takashi Wada cautioned about the long-term impact of the new figures.

He said: "It's too early to characterise the overall development as a positive cycle. But private demand is showing unexpectedly stronger resilience."

Meanwhile, overall bank lending in Japan dropped 1.8 per cent last month, compared to September 2009 – it is the tenth month in a row that a decrease has been reported by the Bank of Japan.

Written by Susan Ballion.