Machinery orders in Japan experienced a 3.0% increase compared to the previous month in June.
Japan's Core Machinery Orders Rebound in June
Japan's core machinery orders saw a significant increase in June 2025, rising by 3.0% month-over-month to ¥941.2 billion, according to data released by the Japanese government. This figure marks a reversal of a two-month decline and outperformed forecasts of a 1% drop or a 0.4% decline, depending on sources.
On a year-on-year basis, core machinery orders grew by 7.6% in June, accelerating from May's 4.4% rise. This growth is a significant deviation from the forecasted 5.0% gain. The data regarding the 7.6% year-on-year growth in core orders was not previously mentioned as being from the Cabinet Office's website.
The increase in core machinery orders in June was driven by the non-manufacturing sector, which surged 8.8% to ¥521.4 billion. This growth was primarily driven by goods leasing (up 41%) and agriculture, forestry & fishing (up 12.4%). In contrast, manufacturing orders fell 8.1% to ¥412.3 billion, with sharp drops in petroleum & coal products (-68.6%), non-ferrous metals (-48%), and iron & steel (-27.4%).
For the second quarter of 2025, machinery orders rose 0.4% quarter-on-quarter and 6.3% year-on-year. However, forecasts for the third quarter predict a 0.4% quarter-on-quarter decline but a 5.0% year-on-year increase in orders.
The growth in core machinery orders is considered a leading indicator of capital spending for the next six to nine months. Core orders, a highly volatile data series, showed a growth rate of 7.6% in June. The increase in Japan's core machinery orders is compared to the previous month and the data showing the increase was released on Wednesday.
In summary, Japan's core machinery orders in June 2025 showed a significant rebound driven by non-manufacturing sectors, outweighing weakness in manufacturing. The annual growth and recent quarterly trends suggest a cautiously improving capital expenditure outlook despite some sectoral softness, according to the Cabinet Office data reported.
Read also:
- Foreign financial aid for German citizens residing abroad persists
- "Germany appears less environmentally friendly compared to Texas, according to Harald Lesch's climate documentary"
- Investing 1 billion funds into the police force of North Rhine-Westphalia for battling rodents and mold issues
- Tesla resurrects transferred Full Self-Driving feature amid other promotional offers
