Japan's extended fall in machinery orders bodes ill for business spending
Added 12-12-19 12:04:02am EST - “Japan saw another decline in machinery orders in October in a fresh sign business spending, one of the few points of strength in the world's third-largest economy, is stalling as slumping exports bruise investment appetite. Core…” - News.yahoo.com
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TOKYO (Reuters) - Japan saw another decline in machinery orders in October in a fresh sign business spending, one of the few points of strength in the world's third-largest economy, is stalling as slumping exports bruise investment appetite.
Core machinery orders fell 6.0% in October from the previous month, down for a fourth straight month and dashing expectations for a 0.9% increase in a Reuters poll, data showed on Thursday.
The decline marked the longest period of month-on-month contraction since a similar stretch to January 2009 and throws up a challenge for policymakers counting on solid business spending to support demand amid a global slowdown.
"Companies are becoming increasingly cautious in regard to investment," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.
The core machinery orders data is a highly volatile series but regarded as a key indicator of capital spending in the coming six to nine months.
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