FX.co ★ Japan Machinery Orders Exceed Forecast in Sept

In September 2025, Japan witnessed a notable upsurge in core machinery orders, which exclude notoriously volatile sectors like shipping and electric power. These orders increased by 4.2% month over month, reaching ¥927.8 billion. This rise follows a 0.9% decline in August and surpasses market predictions of a 2.5% gain. The manufacturing sector significantly contributed to this increase, with orders soaring by 23.3% to ¥515.2 billion, while non-manufacturing orders saw a decrease of 8.7%, bringing them down to ¥428.3 billion. Breaking it down by industry, the chemical and chemical products sector led the charge with an impressive increase of 388.9%. This was followed by substantial growth in the pulp, paper, and paper products sector (84.5%), other transport equipment (40.7%), mining and quarrying of stone and gravel (40.4%), and general-purpose and production machinery (29.7%). Looking at the year-on-year figures, private-sector orders rose by 11.6% in September, indicating a sharp acceleration from the 1.6% growth recorded in August and outperforming anticipated forecasts of a 5.4% increase. Core machinery orders are closely monitored as they are considered a key, albeit volatile, leading indicator of capital expenditure activities expected over the subsequent six to nine months.