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Japan's machinery and equipment orders fell again in October

by：Gewinn 2022-05-16

According to data released by the Cabinet Office of Japan on the same day, the total amount of machinery orders, regarded as a leading indicator of private equipment investment, fell again in October after it stopped falling and rebounded in September, with a decrease of 4.4% month-on-month and a year-on-year decrease of 15.5%. Statistics show that after seasonal adjustment, orders for private machinery and equipment excluding the shipping and power industries in October fell 4.4% from the previous month, totaling 899.7 billion yen (about 92 yen to 1 US dollar). Among them, manufacturing orders fell by 2.2%, and non-manufacturing orders fell by 2.3%. Among the orders in October, 8 of the 15 industries in the manufacturing industry saw orders drop, especially in the petroleum and coal products industry, where orders fell 39.7 percent from the previous month, the report said. At the same time, statistics show that non-manufacturing orders, including the shipping and power industries, fell by 4.4% as a whole, with orders falling in 5 of the 8 industries. In early November, when the Cabinet Office of Japan released data on the rebound in machinery and equipment orders in September, it had expected that orders from October to December would continue to grow. Manufacturers typically start production about 6 months after receiving an order. Therefore, the data on machinery and equipment orders are usually used as a leading indicator of private equipment investment in Japan, and it is also an important reference for the central bank to formulate interest rate policies.

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