Japanese Machinery Orders Weakened In May?
According to the Reuters poll, Japanese machinery orders for May are projected to have declined. Some assume that the reason was the US-China trade war. Core machinery orders are likely to have fallen 5.5% after a 10.1 increase in April. Comparing to 2017, core machinery orders (excluding orders of ships and electric power utilities) are seen to have grown 8.6% after a 9.6% rise in April.
Yosuke Yasui (senior economist at Japan Research Institute) said: "Firms' willingness to undertake capital spending is solid, especially investment in streamlining and labor saving. So we expect machinery orders will grow moderately".
The Reuters poll also suggested that Japan would show current account surplus of JPY1.24T (USD11.20B), lower than April’s JPY 1.845T. The Bank of Japan's CGPI (corporate goods price index) was seen to have risen 2.8% in June from May’s 2.7%.