Japan's core machinery orders rise 0.2% m/m in August(Update)

The increase in core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, compared with a 1.0% contraction forecast by economists in a Reuters poll, the Cabinet Office data showed.

TOKYO: Japan's core machinery orders unexpectedly rose in August from the previous month, posting a second straight month of gains and highlighting resilience in capital spending even as the economy remains under pressure from the coronavirus pandemic.

The modest increase in core orders was a welcome sign of strength for the economy but the outlook for capital spending remained uncertain as companies take a hit on corporate earnings.