Japan’s machinery orders rose more than expected in November, suggesting that companies were optimistic about the economic outlook as the yen weakened.
Orders, an indicator of capital spending, climbed 3.9 percent from the previous month, the Cabinet Office said today in Tokyo. The median estimate of 24 economists surveyed by Bloomberg News was for a 0.3 percent increase. Large orders can cause volatile results.
Prime Minister Shinzo Abe last week unveiled a 10.3 trillion yen ($116 billion) stimulus package that Nomura Securities Co. forecasts will help deliver real annualized growth of 3.5 percent in the April-June quarter. Prospects for exporters may also improve this year as the yen has fallen about 10 percent against the dollar since mid-November.
“The current recession may end up being very short,” said Hideo Kumano, chief economist at Dai-Ichi Life Research Institute in Tokyo and a former central bank official. “The rapid depreciation of the yen may make companies more inclined to invest in the coming months.”
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