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MNI BRIEF: Japan August Machine Orders Drop; Capex in Focus

(MNI) Tokyo
MNI (TOKYO)

Bank of Japan officials will be vigilant in monitoring the outlook for capital investment following weak machinery orders in August, which is inconsistent with strong capex plans in the BOJ's September Tankan survey.

Japan's core machinery orders, which exclude volatile orders for power generation equipment and ships, fell 5.8% m/m in August, recording the first drop in three months following a 5.3% rise in July, data released by the Cabinet Office on Wednesday showed. The Cabinet Office retained its assessment from the previous month, viewing machinery orders as showing signs of recovery.

The BOJ is unlikely to change its view on capex immediately following the latest data on machinery orders, a leading indicator of capex, as the data fluctuates sharply month-on-month. Bank officials will watch upcoming data to determine the strength of capital investment.


MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com
MNI Tokyo Bureau | +81 90-2175-0040 | hiroshi.inoue@marketnews.com

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