Japanese Machinery Tool Orders fall "lousy" 73,3 % yoy

Discussion in 'Economics' started by ASusilovic, Sep 9, 2009.

  1. Japanese machinery orders fell more than economists forecast in July, signaling companies are wary that a rebound in sales abroad will last.

    Orders, an indicator of capital spending in the next three to six months, declined 9.3 percent from June, when they jumped 9.7 percent, the Cabinet Office said today in Tokyo. Economists surveyed by Bloomberg News predicted a 3.5 percent decline.

    Companies including Toyota Motor Corp. are cutting costs to limit losses, and have little incentive to add plant and equipment with more than one third of the country’s factory capacity sitting idle. Japanese stocks rose even after today’s report as investors remained encouraged by global signs of an economic recovery.