FX.co ★ Japan Machinery Orders Unexpectedly Rise in June

In June 2025, Japan witnessed a 3% increase in its core machinery orders, excluding shipbuilding and electric power, reaching ¥941.2 billion. This rise interrupted a two-month downturn and surpassed market expectations, which had predicted a 1% decrease. Despite this positive overall result, the manufacturing sector experienced a decline, with orders dropping by 8.1% to ¥412.3 billion. Significant decreases were observed in petroleum and coal products (-68.6%), non-ferrous metals (-48%), and iron and steel (-27.4%). Contrastingly, the non-manufacturing sector saw an 8.8% jump in orders to ¥521.4 billion, fueled by strong demand in goods leasing (41%) and agriculture, forestry, and fishing (12.4%). Annually, private-sector machinery orders rose by 7.6% in June, an improvement from the 4.4% increase in May and exceeding the anticipated 5%. These core machinery orders are considered an essential yet volatile predictor of capital expenditure trends in the ensuing six to nine months.