Japan downgrades equipment orders in August, expectations by Miss Reuters

ছবি Photo from Reuters file: A factory area in front of Mount Fuji in Yokohama, Japan, January 1, 201. The photo was taken on January 1, 201 on.

By Kantaro Kamia

TOKYO (Reuters) – Japan’s main equipment orders fell unexpectedly in August, citing continued pressure on business and the wider economy as firms struggled to reduce tensions from the coronavirus epidemic.

Data from the Cabinet Office on Wednesday showed key orders, a highly volatile data series that is seen as an indicator of capital spending over the next six to nine months, fell 2.4% in August compared to the previous month, dragged down more than five years due to the biggest drop in orders from manufacturers. Hold on.

Contraction compared to 0.9% growth in July, when economists forecast a 1.7% growth in a Reuters poll.

In comments with data, the government lowered its assessment on equipment orders for the first time in six months, saying the recovery of the series has stalled.

Masato Koike, an economist at the Dai-ichi Life Research Institute, said the film had so far been ‘solid maker and weak non-maker’, but the gap was narrowing.

The export-oriented manufacturing sector is progressing from the global economic downturn to chain disruption, while service-based non-producers have a clear path to recovery as the domestic Covid-1 situation improves.

The order came about a week after the inauguration of new Prime Minister Fumio Kishida, whose predecessor Yoshihide had lost his support due to the Suga coronavirus infection and a long-term ban.

Although Japanese firms have so far accelerated the recovery of the economy through solid production, exports and capital expenditures, the outlook points to a turbulent journey.

Reuters Tankan showed on Wednesday that the attitude of manufacturers fell to a six-month low in October due to long-term shortage of suppliers and rising material costs.

After an annual gross domestic product (GDP) growth of 1.9% in the second quarter, analysts forecast a small gain in Japan’s July-September GDP, which, if not contracted, indicates a decline in personal spending.

According to the sector, due to weak demand from sectors such as electronic machines, manufacturing machines and shipmakers, manufacturers ’orders fell 13.4% month-on-month in August, marking the first fall in five months. This was the biggest fall since February 2011.

Orders from non-manufacturers rose 7.1% after a 9.5% decline in July on demand from wholesalers and retailers and logistics companies.

External orders, which are not counted as core orders, declined 14.7%, slipping after an increase of 24.1% in the previous month.

“The results were poor,” said Shintaro Inagaki, a senior market economist at Mizuho Securities.

“Concerns like chip shortages and recent commodity inflation are not something that will continue in the long run, but they are likely to go away by next spring.”

Compared to a year ago, the original orders dropped for ships and electrical equipment, increased by 17.0% in August, reflecting a double-digit decline in the same month in 2020, data show. Economists predicted a 14.7% jump in the Reuters poll

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