Japan machinery orders rise, economy concerns linger

Core machinery orders in Japan rose 4.7% month-on-month in August but analysts say the 4.7% gain in core machinery orders is not enough to dispel concerns the economy is losing traction even as the Bank of Japan keeps ultra-loose monetary policy - AFP Photo.

TOKYO: Japan's leading gauge of capital spending rose for a third straight month in August, in a tentative sign firms are investing their profits in plants and equipment that could bolster growth in the world's third largest economy.

But analysts say the 4.7% gain in core machinery orders is not enough to dispel concerns the economy is losing traction even as the Bank of Japan keeps ultra-loose monetary policy and the government stands ready to deploy fresh stimulus.