MNI DATA IMPACT: Japan May Machine Orders Down 7.8% m/m

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

generation equipment and ships, plunged in May due as production contracted,

data from the Cabinet Office released on Monday showed. 

     -- Core orders fell 7.8% in May, down sharply from last month's 5.2% gain,

marking the first drop in four months. The outcome was worse than the MNI survey

median of 13 economist forecasts suggesting a 3.0% decrease. 

     -- The drop was came from falls in both the manufacturing and

non-manufacturing sectors -- dropping 7.4% and 9.0% respectively, compared with

the 16.3% and 1.2% gain seen last month.

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

month, up 0.2% in May after +3.6% and -0.01% in April and March.

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

saying it "shows sign of picking up".

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

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

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