Japan's extended fall in machinery orders bodes ill for business spending

  • 📰 The Straits Times
  • ⏱ Reading Time:
  • 51 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 24%
  • Publisher: 63%

Malaysia News News

Malaysia Malaysia Latest News,Malaysia Malaysia Headlines

TOKYO (REUTERS) - Japan saw another decline in machinery orders in October in a fresh sign business spending, one of the few points of strength in the world's third-largest economy, is stalling as slumping exports bruise investment appetite.. Read more at straitstimes.com.

TOKYO - Japan saw another decline in machinery orders in October in a fresh sign business spending, one of the few points of strength in the world's third-largest economy, is stalling as slumping exports bruise investment appetite.

"Companies are becoming increasingly cautious in regard to investment," said Takumi Tsunoda, senior economist at Shinkin Central Bank Research Institute.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. However, the drop in orders suggests Japanese manufacturers are increasingly cautious about their spending amid weakening demand, due in large part to slowing growth in China and the damaging Sino-U.S. trade war.

GROWTH DRIVER Some analysts say the third quarter strength masked fragility that could lead to future weakness, as a sales tax hike in October - the first in more than five years - slows consumption, one of the economy's main growth drivers. The export slump is also expected to slash Japan's tax receipts for the current fiscal year to more than 2 trillion yen below the government's initial target, a major blow to efforts to tighten public finances.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 8. in MY

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Tokyo: Stocks open higher as Federal Reserve keeps rates unchangedTokyo: Stocks open higher as FederalReserve keeps rates unchanged
Source: BusinessTimes - 🏆 15. / 51 Read more »

Tokyo: Stocks open flat as US tariff deadline nearsTokyo: Stocks open flat as US tariff deadline nears
Source: BusinessTimes - 🏆 15. / 51 Read more »