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REPEAT: MNI 5 THINGS: Japan June Machine Orders Slump

--Japan June Core Machine Orders -8.8% M/M; MNI Median -1.0%
--Japan June Core Machine Orders Post 2nd Straight M/M Drop
--Japan Q3 Core Machine Orders Seen -0.3% Q/Q; Q2 +2.2%
--Japan Govt Downgrades View: Pickup in Machine Orders Stalling
     TOKYO (MNI) - Japan's core machinery orders, which exclude volatile orders
for power generation equipment and ships, slumped 8.8% on month in June for the
second straight m/m decline after -3.7% in May, indicating firms may be slowing
capital investment, data from the Cabinet Office released Thursday showed.
     The key points from the latest machinery orders data:
     * The core order decrease was bigger than the MNI survey median economist
forecast for a 1.0% drop (forecast range: from -6.5% to +2.3%). July-September
core orders are expected to post the first drop in five quarters, down 0.3%
after +2.2% (revised down from +7.1%) for the April-June quarter.
     * The three-month moving average of core orders fell 1.1% in June from the
previous three-month period, marking the first drop in six months after +0.6% in
May.
     * The Cabinet Office downgraded its assessment for the first time since May
2017, saying, "The picking-up in machinery orders is stalling." Previously, it
said, "Machinery orders are picking up."
     * "The level of core orders was the lowest since December last year but the
latest data does not indicate the trend is moving downward," a Cabinet Office
official said. "The forecast drop in the July-September quarter is small." 
     * Orders from the manufacturing sector fell 15.9% on month in June, the
first drop in three months after +1.3% in May, while orders from the
non-manufacturing sector excluding those for power generation and ships also
fell 7.0% on month, the first fall in sixth months after +0.2% in May.
--MNI Tokyo Bureau; tel: +81 90-4670-5309; email: max.sato@marketnews.com

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