Japan's core private-sector machinery orders rise 13.9 pct in June

Source: Xinhua| 2019-08-14 09:26:18|Editor: Shi Yinglun
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TOKYO, Aug. 14 (Xinhua) -- Japan's core private-sector machinery orders rose in June from a month earlier, the government said in a report on Wednesday.

According to the Cabinet Office, the orders, excluding those for ships and utilities because of their volatility, rose 13.9 percent in June from the previous month.

The orders totaled 960.3 billion yen (9.0 billion U.S. dollars) in the recording month, the government's data showed.

The increase in core orders in the recording period comes on the heels of a 7.8 percent decrease booked a month earlier.

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 here can boost the economy as Japanese companies are producing more machinery to meet rising demands from overseas markets.

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.