RPT Japan Nov core machinery orders up 3.8 pct from Oct; beats forecast - UPDATE |
|
|
|
Published
:
Mon, 15 Jan 2007 03:33
|
TOKYO (XFN-ASIA) - Core private sector machinery orders in November rose a seasonally adjusted 3.8 pct from October, after having risen by 2.8 pct in the previous month, the Cabinet Office said.The November figure was slightly above the consensus forecast of a 3.4 pct rise based on a Nihon Keizai Shimbun poll of economists.Core private sector machinery orders, which exclude orders from electric utilities and for ships, are viewed as a leading indicator of corporate capital spending.'Core private sector machinery orders showed a rise in November, which was largely in line with the market's expectation, led by foreign orders,' said JP Morgan Securities chief economist Masaaki Kanno.Foreign orders jumped 19.7 pct from October and were up 42.8 pct year-on-year. Total orders rose 14.2 pct month-on-month and were up 14.9 pct from a year earlier.The value of foreign orders for November rose to a record high of 1.30 trln yen due to last-minute orders before the revision of the requirement on ships' coating standards take effect, an official of the Cabinet Office said.'Today's machinery orders data seem to suggest that non-residential investment, equivalent to corporate capital investment in the GDP report, could show a quarter-on-quarter rise of 5-10 pct,' Kanno said.Year-on-year, core machinery orders were up 0.7 pct in November, after dropping 1.2 pct in October.'Machinery orders have been going up and down, within certain ranges, after a huge drop in July,' the Cabinet Office representative said.The Cabinet Office left the overall assessment unchanged in November since September.Machinery orders placed by the manufacturing sector rose 9.7 pct month-on-month in November and were up 3.7 pct from a year before.Orders placed by non-manufacturers were up 5.7 pct month-on-month but fell 1.8 pct from a year earlier.The official said significant contributors for the rise in manufacturing were petroleum and coal products, up 253.6 pct; other manufacturing such as industrial machinery, up 21.7 pct; and shipbuilding, up 33.2 pct.In the non-manufacturing sector, contributors for the increase in machinery orders were transportation, rising 75.7 pct; telecommunications, up 12.2 pct; and electricity supply, up 16.0 pct.Public sector orders were up 9.8 pct in November and fell 13.6 pct from a year before.For the October-December quarter, core machinery orders are expected to rise 5.7 pct compared to the previous three months, the Cabinet Office said.In order to achieve the 5.7 pct quarterly rise, December machinery orders should rise by at least 9.8 pct from November, it said.(1 usd = 120.26 yen)kaori.kaneko@xfn.com
|
|
|
|
Print this Story
Japan Nov core machinery orders up 3.8 pct from Oct; beats forecast 