Tokyo: Japan's core machinery orders fell 0.6 percent month-over-month to ¥913.5 billion in May 2025. The decline was significantly smaller than April's sharp 9.1 percent drop and better than market expectations for a 1.5 percent fall.
According to Emirates News Agency, the decrease was driven by the manufacturing sector, where orders slipped 1.8 percent to ¥448.5 billion. Notable declines were observed in chemical and chemical products (-38.7 percent), business-oriented machinery (-29.3 percent), and pulp, paper, and paper products (-18.5 percent).
In contrast, non-manufacturing orders experienced a rise of 1.8 percent to ¥479.3 billion, bolstered by increases in mining and quarrying of stone and gravel (91.5 percent), real estate (76.5 percent), and finance and insurance (16.7 percent).
Year-over-year, private-sector machinery orders increased 4.4 percent in May, which was a slowdown from April's 6.6 percent gain but still exceeded forecasts of a 3.4 percent rise. Core machinery orders are considered a key leading indicator of capital spending over the next six to nine months.