TOKYO - Japan’s machinery orders unexpectedly rose for a third straight month in April, signalling solid business investment, though analysts expect an intensifying Sino-U.S. trade war and global slowdown to hurt capital spending over the coming quarters.
It marked the biggest gain since last October, and compared with economists’ median estimate of a 0.8% decline in a Reuters poll. In March, orders rose 3.8%. Underscoring the pressure on export-reliant Japan, external orders, which do not account for ‘core orders’ tumbled 24.7% month-on-month in April, reversing from the prior month’s 9.0% gain and posting the biggest drop since November 2015.
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