Analysts estimated that the number of core machinery orders in Japan grew exponentially. The reading beat the preliminary forecasts even though economists had expected core machinery orders to plunge by 1.0%.
Core machinery orders are one of the key indicators for the Japanese economy. It shows the change in the total value of new internal orders received by machine manufacturers, excluding ships and utilities. According to experts, it is the primary index that reflects the volume of investments in the Japanese industrial sector.
For the reporting period, this indicator showed a steady increase in capital expenditures even despite the negative consequences of the COVID-19 pandemic. At the same time, the volatility of core machinery orders in the coming six to nine months has primarily been on the highest level. In August 2020, the growth rate in core machinery orders accelerated by 0.2%. That was significantly lower compared to a 6.3% increase registered in July.
