In October 2024, Japan's core machinery orders experienced a significant increase of 2.1% from the previous month, totaling 869.8 billion yen. This rise exceeded economists’ predictions of a 1.2% increase and marked the end of three consecutive months of decline.
According to Cabinet Office statistics, core orders, viewed as a variable data set essential for predicting capital expenditures in the next six to nine months, rose by 5.6% compared to the prior year, reversing a 4.8% drop in September and exceeding the anticipated 0.7% increase.
These statistics indicate a recovery in Japan's manufacturing industry, highlighted by substantial growth in sectors like pulp, paper & paper goods (up 560%), electricity generation (up 116.2%), iron & steel (up 75.7%), non-ferrous metals (up 65.4%), and various transport equipment (up 49.9%).
The Cabinet Office maintained its evaluation of machinery orders for October, stating that recovery was pausing.
Analyzing the data by sector, manufacturer orders grew by 12.5% compared to the previous month, reaching a total of 436.8 billion yen. In comparison, requests from non-manufacturers fell by 1.2% to 448.4 billion yen.
However, the decrease in non-manufacturing orders suggests that the recovery is not yet extensive. The Cabinet Office's evaluation indicates persistent uncertainties in the worldwide economy, potentially impacting future capital expenditures.