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Japan Investment February 2020

Japan: Core machinery orders remain robust in February

Core machinery orders—which cover the private sector, exclude volatile orders and are a leading indicator for capital spending over the coming three- to six-month period—rose in February for the second consecutive month and defied market analyst expectations of a decrease.

Specifically, orders rose 2.3% in February versus the previous month in seasonally-adjusted terms, following the 2.9% increase in January and contrasting expectations of a 2.7% decrease.

In year-on-year terms, orders fell 2.4% in February, following the 0.3% decrease in January. The annual average variation in orders was negative 0.3% in February, marginally less severe than the negative 0.6% reading in January.

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