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Tuesday, 11th August 2009
In Business In Japan,

Japan sees rise in machinery orders

Japan has seen a rise in the number of core machinery orders for the first time in four months, it has been reported.

Such orders are seen as a key indicator of corporate spending in the country.

In total, core machinery orders rose by 9.7 per cent from May, taking them to 732.8 billion yen (£4.4 billion), according to findings from the Cabinet office.

This figure was a sharp increase from the 2.9 per cent growth that forecasters predicted for the market.

Overall, the newly released figures show an improvement in the state of the Japanese economy, which saw a three per cent decline in May.

However, despite the surprising figures, market analysts are still cautious about the country's economic recovery.

Yasukazu Shimizu, an economist at Mizuho Securities, said: "A recovery in capital spending won't be assured unless production picks up in a lasting way, which depends largely on how final demand in the Western markets recovers."

Written by Graham McPherson.