Japan core machinery orders surge in January

| March 9, 2011 | 0 Comments
Japan core machinery orders surge in January

Japanese core private-sector machinery orders – a highly volatile series seen as an indicator of corporate spending – rose 4.2% in January on a monthly basis - easily beating expectations of a 3.1% increase.

The increase in orders represented the second consecutive monthly rise, according to the Cabinet Office, and follows December’s 1.7% rise and represented the biggest increase since August.

“Machinery orders are on the recovery trend, but weakness is seen in the non-manufacturing sector,” said the Cabinet Office.

The figures will boost recovery hopes after the world’s third largest economy contracted by 0.3% in the final three months of 2010.

While it was marginally less than the 0.5% fall expected by analysts, it still represented the first contraction in five quarters.

However, despite the contraction, analysts expect an export-driven recovery this year.

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