emirates7 - Japan's core machinery orders dipped by 0.6% month-over-month in May 2025, reaching ¥913.5 billion.
Although the figure marked a second consecutive monthly decline, it was a notable improvement from April’s steep 9.1% and surpassed market expectations of a 1.5% decrease.
The decline was mainly attributed to the manufacturing sector, where orders fell 1.8% to ¥448.5 billion. Significant reductions were observed in chemical and chemical products (-38.7%), business-oriented machinery (-29.3%), and pulp, paper, and paper products (-18.5%).
On the other hand, orders from the non-manufacturing sector rose by 1.8% to ¥479.3 billion, buoyed by strong demand in mining and quarrying of stone and gravel (up 91.5%), real estate (up 76.5%), and finance and insurance (up 16.7%).
On a yearly basis, private-sector machinery orders climbed 4.4% in May, easing from a 6.6% rise in April but still beating the projected 3.4% increase. Core machinery orders are considered a key indicator of capital investment trends over the next six to nine months.
Although the figure marked a second consecutive monthly decline, it was a notable improvement from April’s steep 9.1% and surpassed market expectations of a 1.5% decrease.
The decline was mainly attributed to the manufacturing sector, where orders fell 1.8% to ¥448.5 billion. Significant reductions were observed in chemical and chemical products (-38.7%), business-oriented machinery (-29.3%), and pulp, paper, and paper products (-18.5%).
On the other hand, orders from the non-manufacturing sector rose by 1.8% to ¥479.3 billion, buoyed by strong demand in mining and quarrying of stone and gravel (up 91.5%), real estate (up 76.5%), and finance and insurance (up 16.7%).
On a yearly basis, private-sector machinery orders climbed 4.4% in May, easing from a 6.6% rise in April but still beating the projected 3.4% increase. Core machinery orders are considered a key indicator of capital investment trends over the next six to nine months.