Record fall in May's machinery orders cast shadow over Japan economy

Japan's core machinery orders fell 19.5% in May from the previous month, casting doubt over the outlook for a pickup in capital spending - AFP Photo.

TOKYO: Japan's machinery orders suffered their worst monthly fall on record in May, defying expectations of a bounce and casting doubt on hopes that capital spending was picking up and could drive further economic recovery.

Core orders fell 19.5% from the previous month in a highly volatile data series that is regarded as an indicator of capital spending in the coming six to nine months.