Japan Machinery Orders Rise at Fastest Pace in 6 Months

Japan’s core machinery orders rose in December at the fastest pace in six months, and companies expect orders to increase in the current quarter in an positive sign that business investment will underpin a firm recovery for the recession-hit economy.

The encouraging data is a welcome relief for the Bank of Japan at a time of considerable uncertainty in the global economy, with plunging oil prices and rising deflationary pressures prompting a wave of monetary easings around the world.

The 8.3 percent month-on-month gain in core machinery orders, a highly volatile data series regarded as a leading indicator of capital spending in the coming six to nine months, blew past the median estimate for a 2.4 percent increase.

The strength of the data was further burnished by a survey from the Cabinet Office showing companies also expect orders to rise 1.5 percent in January-March, stepping up from a 0.4 percent quarterly increase in October-December.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza