MNI DATA IMPACT: Japan June Machine Orders Surge 13.9% m/m

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

generation equipment and ships, jumped in June as production expanded, data from

the Cabinet Office released on Wednesday showed. 

     -- Core orders increased 13.9% m/m in June, up sharply from last month's

7.8% drop. The outcome was higher than the MNI survey median of 13 economist

forecasts suggesting a 1.0% decrease. 

     -- The surge was driven by improvements in both the manufacturing (-1.7%

m/m VS -7.4% m/m) and non-manufacturing (30.5% m/m VS -9.0% m/m) sectors.

     --The three-month moving average of core orders rose for a third straight

month, up 3.5% in June, following 0.2% and 3.6% recorded in May and April,

respectively.

     -- The outlook for July-September period is for a 6.1% fall, down from the

outlook of a 7.5% rise seen in the previous quarter.

     -- The Cabinet Office kept its outlook assessment on the machinery orders,

saying it "shows sign of picking up".

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MAJDS$,MAUDR$,MAUDS$,M$A$$$,M$J$$$,M$U$$$]