Japan Aug core machinery orders down 5.7 per cent on month

People work at a construction site in Tokyo, September 9, 2015. 

PHOTO: REUTERS

OCT 8, 20158:06 AM

[TOKYO] Japan's core machinery orders unexpectedly fell 5.7 per cent in August from the previous month, Cabinet Office data showed on Thursday, which could cast doubt on the strength of capital expenditure.

The month-on-month fall in core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, compared with a 3.2 per cent increase expected by economists in a Reuters poll.

Compared with a year earlier, core orders, which exclude those of ships and electric power utilities, fell 3.5 per cent in August, versus a 4.2 per cent annual increased expected in the Reuters poll.

The Cabinet Office lowered its assessment of machinery orders, saying they are stalling.

REUTERS