Japan’s April machinery orders slip in a blow to Abenomics

June 12, 2013
June 12, 2013

As the volatility in Japanese markets suggests, the success of Abenomics is far from guaranteed.

The latest update on Japanese machinery orders—a key barometer of future investment by Japanese businesses—fell sharply in April, after posting a surge in March. Core domestic orders dropped 8.8% in April compared with March. (In March they were up 14.2%.) Core orders exclude volatile sectors such as ship-building and power companies, which can post big orders and skew the data. Here’s a look:

Tap image to zoom

Foreign orders, a closely watched gauge of future Japanese exports, tumbled 19.9% in April. But, again, that followed a big surge of more than 52% in March.

Tap image to zoom

The data did little to dampen the excitement about Japan coming from Barclays economists. “The economy will likely continue to improve with 1) the trend of JPY depreciation, 2) the rise in share prices, 3) the implementation of economic stimulus measures, 4) the strength of private consumption and 5) improvements in the overseas economy,” they said in the write up about the machinery numbers.

Top News

Powered by WordPress.com VIP
Follow

Get every new post delivered to your Inbox.

Join 26,673 other followers