Japan Machinery Orders Fall 7.1%
Japan’s Machinery Orders Fall 7.1% From Previous Month
Kiyoshi Ota/Bloomberg
A worker configures the software system and programs on Panasonic Corp. laptop computers at the the company's plant in Kobe City, Hyogo Prefecture, Japan.
A worker configures the software system and programs on Panasonic Corp. laptop computers at the the company's plant in Kobe City, Hyogo Prefecture, Japan. Photographer: Kiyoshi Ota/Bloomberg
Jan. 30 (Bloomberg) -- Ben Collett, head of Japanese equities at Louis Capital Markets HK Ltd., talks about Japan's economy and the yen. He speaks with Rishaad Salamat on Bloomberg Television's "On the Move Asia." (Source: Bloomberg)
Jan. 27 (Bloomberg) -- Gavin Parry, managing director of Hong Kong-based brokerage Parry International Trading Ltd, talks about Japan's economy and stock market. Parry also discusses Hong Kong stocks, China's economy, and Europe's sovereign debt crisis. He speaks with Rishaad Salamat, Susan Li, John Dawson and Zeb Eckert on Bloomberg Television's "Asia Edge." (Source: Bloomberg)
Jan. 27 (Bloomberg) -- Junko Nishioka, chief Japan economist in Tokyo at RBS Securities Japan Ltd. and a former Bank of Japan official, talks about the nation's economy. Japan’s consumer prices fell for a third month as an export slump and the stronger yen weighed on the nation’s economic rebound from the record March earthquake. Nishioka speaks with Susan Li on Bloomberg Television's "First Up." (Source: Bloomberg)
Bank of Japan Governor Masaaki Shirakawa
Kiyoshi Ota/Bloomberg
Masaaki Shirakawa, governor of the Bank of Japan, said that the economy is in a “severe” condition because of deflation and gains in the yen.
Masaaki Shirakawa, governor of the Bank of Japan, said that the economy is in a “severe” condition because of deflation and gains in the yen. Photographer: Kiyoshi Ota/Bloomberg
Japan’s machinery orders fell at the fastest pace in three months in December as a faltering global economy and gains by the yen dimmed the outlook for exporters.
Bookings, an indicator of capital spending, decreased 7.1 percent from the previous month, the Cabinet Office said in Tokyo today, after surging 15 percent in November. The median estimate of 29 economists surveyed by Bloomberg News was for a 5 percent decline.
Japan’s exports fell for three straight months through December as European leaders grappled with the debt crisis that is driving the euro region into a recession. Spending may rebound as earthquake reconstruction work kicks in and today’s report showed companies forecasting a 2.3 percent increase in orders this quarter.
“Growing uncertainties over the global economy and the yen’s gains could discourage companies” from spending, said Yoshiki Shinke, a senior economist at Dai-Ichi Life Research in Tokyo. At the same time “it’s unlikely that capital spending will turn into a declining trend in coming months because of reconstruction demand,” he said.
Japan’s currency climbed to a post-World War II high of 75.35 per dollar on Oct. 31, eroding profits at exporters such as Sharp Corp (6753). and Honda Motor Co. The yen traded at 77.13 in Tokyo as of 10:02 a.m., from 77.05 before the report.
‘Severe’ Condition
Bank of Japan Governor Masaaki Shirakawa said this week that the economy is in a “severe” condition because of deflation and gains in the yen.
Japan’s lower house of parliament on Feb. 3 approved Prime Minister Yoshihiko Noda’s 2.5 trillion yen ($32 billion) recovery package from the earthquake and tsunami, the fourth supplementary budget since the disaster. The government forecast in December that Japan’s economy will grow 2.2 percent in the year starting April after a projected 0.1 percent contraction this fiscal year.
The International Monetary Fund estimates that Japan’s economy will grow 1.7 percent this year, compared with a likely 1.8 percent expansion for the U.S. and an estimated 0.5 percent contraction for the euro area.
To contact the reporter on this story: Andy Sharp in Tokyo at asharp5@bloomberg.net
To contact the editor responsible for this story: Paul Panckhurst at ppanckhurst@bloomberg.net
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