TOKYO, Feb. 18 (Xinhua) -- Core private-sector machinery orders in Japan edged down in December from a month earlier, the government said in a report on Monday.
According to the Cabinet Office, orders in the recording month, inched down 0.1 percent from the previous month, with the total orders, excluding those for ships and from utilities because of their volatility, coming to 862.6 billion yen (7.8 billion U.S. dollars).
The latest reading follows a 0.02 percent retreat in November, the Cabinet Offices 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.
A rise in capital expenditure can boost the economy as it means Japanese companies are producing more machinery to meet growing demands from overseas markets. A decline implies the obverse.
Such business investment accounts for roughly 15 percent of Japan's gross domestic product.
The types of machinery included in the monthly government survey comprise engines and turbines, heavy electrical machinery, electronic and communication equipment, industrial machinery, machine tools, railway rolling stock, road vehicles, aircraft, ships, water crafts, as well as sub types in those categories.
