MNI DATA IMPACT: Japan Apr Machine Orders Drop Sharply

     TOKYO (MNI) - Japan's core machinery orders, excluding those for power

generation equipment and ships, dropped sharply in April, dragged lower by

rapidly falling orders from non-manufacturing sectors, according to data from

the Cabinet Office released on Wednesday. As a result of the data, METI lowered

its assessment of the outlook due to the uncertainties. 

     -- Core orders fell 12.0% m/m in April, sharply down from the 0.4% m/m

decline reported in March, marking the second fall in three months.

     -- Orders from non-manufacturing sectors fell sharply by 20.2% m/m,

compared with last month's 5.3% m/m gain. Orders from manufacturing sectors

dropped 2.6% m/m in April, recovering from the previous 8.2% m/m drop. 

     -- The outlook for the April-June period is for a fall of 0.9%, compared

with the 0.7% decrease over the previous quarter.

     --The three-month moving average for core orders declined 3.4% in April,

following March's 1.6% gain and a decline of 2.6% in February.

     --The Cabinet Office downgraded its outlook assessment and pointed out the

need to adhere to policy.  

--MNI Beijing Bureau; tel: +86 (10) 8532-5998; email: flora.guo@marketnews.com

--MNI Sydney Bureau; +61 405322399; email: lachlan.colquhoun.ext@marketnews.com

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