Japan's Core Machinery Orders Show Significant Growth in October

According to government data released on Monday, Japan's core machinery orders increased by 2.1% in October compared to the previous month. This growth outpaced the 1.2% rise anticipated by economists in a Reuters poll.

On a year-on-year basis, core orders, which are considered a leading indicator of capital spending over the next six to nine months, grew by 5.6%. This growth rate surpassed the forecasted 0.7% increase, as indicated by the Cabinet Office data.

The manufacturing sector played a significant role in this growth, with core orders from manufacturers surging by 12.5% month-on-month in October. In contrast, orders from non-manufacturers declined by 1.2% during the same period.

Despite the positive numbers, the Cabinet Office maintained its assessment of machinery orders for October, stating that the recovery is pausing.