FX.co ★ Japan Machinery Orders Surge, Defying Forecasts

Japan witnessed a significant surge in core machinery orders, excluding those for ships and electric power companies, as they soared by 13% month-on-month to reach ¥1.01 trillion in March 2025. This remarkable increase surpassed market predictions of a 1.6% decrease. The latest figures represent the highest level seen in nearly twenty years, driven by strong demand in both the manufacturing and non-manufacturing sectors. Manufacturing orders grew by 8% to ¥459.3 billion, while non-manufacturing orders increased by 9.6% to ¥534 billion. Notable gains were observed in areas such as other non-manufacturing (57.6%), other transport equipment (42.9%), automobiles and parts (27.4%), telecommunications (25.6%), and general-purpose and production machinery (17%). On an annual basis, private-sector machinery orders increased by 8.4% in March, up from a 1.5% rise in February, contradicting forecasts for a 2.4% decline. Core machinery orders are recognized as a volatile yet crucial leading indicator for capital expenditure over the following six to nine months.