Japan Machinery Orders Decline 0.6% Month-over-month In May

Fahad Shabbir (@FahadShabbir) Published July 14, 2025 | 10:45 AM

TOKYO, (UrduPoint / Pakistan Point News / WAM - 14th Jul, 2025) Japan’s core machinery orders fell 0.6 percent month-over-month to ¥913.5 billion in May 2025.

The decline was significantly smaller than April’s sharp 9.1 percent drop and better than market expectations for a 1.5 percent fall.

The decrease was driven by the manufacturing sector, where orders slipped 1.8 percent to ¥448.5 billion. Notable declines were seen in chemical and chemical products (-38.7 percent), business-oriented machinery (-29.3 percent), and pulp, paper, and paper products (-18.

5 percent).

In contrast, non-manufacturing orders rose 1.8 percent to ¥479.3 billion, supported by strong gains in mining and quarrying of stone & gravel (91.5 percent), real estate (76.5 percent), and finance & insurance (16.7 percent).

Year-over-year, private-sector machinery orders increased 4.4 percent in May, down from April’s 6.6 percent gain but still above forecasts of 3.4 percent. Core machinery orders are viewed as a key leading indicator of capital spending over the next six to nine months.