Japan’s core machinery orders plunged at the fastest pace in a decade in the third quarter as the economy teetered on the verge of recession, official data showed. The core private-sector orders, a leading indicator of corporate capital spending, tumbled 10.4% in the three months to September, the first quarterly drop in more than a year.
In the quarter to September, core orders by manufacturers fell 10.9%, while orders by non-manufacturers sank 12%. In September alone, orders rose a stronger-than-expected 5.5%, the first increase in four months, led by the electronics and chemicals sectors. The rise followed a 14.5% fall in August and was the strongest performance since May when the orders jumped 10.4%.
Source: Economic and Social Research Institute, Cabinet Office (Japan).