The report on new orders published by the Cabinet of Ministers of Japan, showed that the total volume of orders for machinery in August with a seasonally adjusted increased by 3.4% per month, which is Y882,4 billion Figure was above economists ‘ forecast of 1.1%, but significantly lower than the previous figure of 8.0%
The annual volume of orders for machinery increased in August by 4.4%, beating the expectations of growth by 0.8% after a decline of -7.5 percent in July.
The report on new orders for machinery is considered the best leading indicator in the area of capital expenditure of enterprises, the growth of the index indicates improving business confidence and, consequently, a high reading is positive for the Japanese currency.
The total value of orders, including aircraft, ships and equipment for electric power companies, increased by 8.5% in the month and 21.5% year on year to Y2,583,9 billion.
Factory orders increased by 16.1% in the month and by 14.8% year-on-year to Y413,0 billion, while non-manufacturing orders gained 3.1% in the month and lost 2.8% in annual terms to Y486,9 billion.
Government contracts increased by 17.8% in the month and by 25.3% yoy. Orders from abroad rose by 11.5% in the month and 44.5% per year. Orders from agencies fell by -0.6% in the month and increased by 9.2% yoy.
According to forecasts, in the third quarter of 2017, it is expected that orders for machinery will increase by 7.0% compared to the previous quarter and 0.1% year on year.
Information-analytical Department Forex club