File photo: CGTN
TOKYO, Jan. 16 (Xinhua) -- Core private-sector machinery orders in Japan increased in November from a month earlier, the government said in a report on Thursday.
According to the Cabinet Office, orders in the recording month rose 18.0 percent from the previous month, with the total orders, excluding those for ships and from utilities because of their volatility, coming to to 942.70 billion yen (8.5 billion U.S. dollars).
The latest reading marked the first increase in five months, although the Cabinet Office maintained its assessment from a month earlier that orders are "stalling."
The assessment follows September's view from the office that machinery orders were "showing signs of stalling in their recovery."
Orders from non-manufacturers, excluding those for ships and from power companies, increased 27.8 percent to 592.07 billion yen (5.3 billion U.S. dollars), the office said, while those from manufactures rose for the first time in four months by 0.6 percent to 357.14 billion yen (3.2 billion U.S. dollars).
Orders from overseas, meanwhile, a barometer of the future direction of exports, fell 1.5 percent to 776.64 billion yen (7 billion U.S. dollars) in the recording period, following a 2.9 percent increase logged in October.
In addition, the Cabinet Office said that total orders, including those from the public sector, rose 3.6 percent to 2.33 trillion yen (21.1 billion U.S. dollars) in the recording month.
Machinery orders are a key advance indicator for corporate capital spending and the government uses the data to predict the strength of business spending in a six to nine month period ahead.
A rise in capital expenditure as is the case here can boost the economy as it means Japanese companies are producing more machinery to meet growing demands from overseas markets.
Such business investment accounts for roughly 15 percent of Japan's gross domestic product.
The types of machinery included in the monthly government survey comprise engines and turbines, heavy electrical machinery, electronic and communication equipment, industrial machinery, machine tools, railway rolling stock, road vehicles, aircraft, ships, water crafts, as well as sub-types in those categories.