July-September Machine Orders Decreased by 1.6% Compared to The Previous Three Months

According to statistics on machinery orders, which show the outlook for corporate capital investment, the value of orders received by major machinery manufacturers from domestic companies between July and September this year, excluding ship and power orders, which fluctuate widely, was 2,743.8 billion yen, down 1.6% compared to the previous three months. This is the first time in two quarters that the value of orders has been negative, with a breakdown showing that orders from the manufacturing sector fell by 2% from the previous three months due to a decrease in orders from the electrical machinery and steel industries, while orders from the non-manufacturing sector also fell by 1.4% due to a decrease in orders from the construction industry.

Based on this, the Cabinet Office has revised its basic assessment downward, saying that "movements of recovery are showing signs of stagnation." On the other hand, the amount of orders received for the three months from October is expected to increase by 3.6%, as capital investment will recover as economic activity normalizes.

Source: https://www3.nhk.or.jp/news/html/20221116/k10013892931000.html