Japan's Oct. machinery orders slip for fourth month, raising doubts about business spending

TOKYO - Japan’s core machinery orders slipped for a fourth straight month in October, in a sign the economy risks hitting a wall in the fourth quarter as slowing demand abroad and at home hit corporate and consumer spending.

Policymakers are counting on solid business spending to support demand as a broader global slowdown and a sales tax hike in October expose widening rifts in the world’s third-largest economy. The core machinery orders data is a highly volatile series but regarded as a key indicator of capital spending in the coming six to nine months.

Recent data, including retail sales and household spending, suggested consumers tightened their purse strings following the sales tax hike, highlighting worries about weak consumer demand.

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