Business News
Japan machinery orders log unexpectedly strong rise in September
Nov 11, 2009, 3:42 GMT
Tokyo - Japan's core machinery orders for September jumped 10.5 per cent, a significantly bigger jump than expected, government data showed Wednesday, giving rise to hopes that the world's second-largest economy is heading toward a sustained recovery from its worst postwar recession.
Orders rose by 738 billion yen (8.25 billion dollars) compared with August, the second-consecutive monthly rise, the Cabinet Office said Wednesday. Analysts had predicted a 3-per-cent rise.
Core machinery orders, which exclude volatile orders from power companies and shipping, are a closely watched indicator of business investment in the next three to six months.
Orders for September were down 22 per cent year-on-year, a reminder of steep cuts necessary for Japanese companies to survive the global downturn, but the drop was smaller than the 26.5-per-cent fall recorded in August.
Tokyo's stock markets gained ground in reaction to the report in Wednesday's trading, led by machinery makers.
In August, machinery orders rose by 0.5 per cent month-to-month while they logged a 9.3-per-cent fall in July.
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