TOKYO: Core private-sector machinery orders in Japan rose in April from a month earlier, the government said in a report on Wednesday.
According to the Cabinet Office, orders in the recording month increased 5.2 percent from the previous month, with the total orders, excluding those for ships and from utilities because of their volatility, coming to 913.7 billion yen (8.42 billion U.S. dollars), reports Xinhua.The latest reading follows a 3.8 percent retreat the previous month, the Cabinet Office's data showed.
Machinery orders are a key advance indicator for corporate capital spending and the government uses the data to predict the strength of business spending in a six to nine month period ahead.
An increase in capital expenditure, as is the case here, can bolster the economy as it means Japanese companies are producing more machinery to meet rising demand from overseas markets.
Such business investment accounts for roughly 15 percent of Japan's gross domestic product.