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Japan’s Private Machinery Orders Fall 0.6% in May as Manufacturing Weakens

The Cabinet Office retains a positive outlook despite uncertainty over the impact of Trump administration’s high tariffs

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Overview

  • May’s private machinery orders excluding shipbuilding and power fell 0.6% to ¥913.5 billion, marking a second consecutive monthly drop
  • Manufacturing orders declined 1.8% to ¥448.5 billion as large April contracts in the chemical sector created a reactionary pullback
  • Non-manufacturing orders rose 1.8% to ¥479.3 billion on strong electronic computing equipment demand from finance, insurance, wholesale and retail firms
  • The Cabinet Office maintained its baseline judgment that there are “signs of a pickup” in private sector equipment investment
  • Officials said they cannot yet gauge the effect of Trump administration’s high tariffs and pledged to closely monitor future machinery order trends