Japan's core machinery orders fell by 8.2% on September, with a bigger drop than expected

Japan’s Cabinet Office’s data released on Thursday (November 10) showed that the monthly rate of core machinery orders in Japan fell by 8.2% in September, which was a drop of 7.5% over the previous market’s forecast.

In September, the core machinery orders recorded an annual increase of 9.8%, which was also lower than the expected 10.6% increase.

Some analysts pointed out that the core machinery order data for September was worse than expected, indicating that the strong yen and the global economic slowdown may dampen corporate spending.

According to a Cabinet Office survey, Japanese manufacturers expect that the quarterly rate of core machinery orders will decline by 3.8% in the fourth quarter. Prior to the third quarter, the core mechanical orders quarterly rate increased by 1.5%.