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Japan’s machinery orders barely rise in August

Japan’s core machinery orders edged up 0.2 percent in August from the previous month amid the fallout from the coronavirus pandemic, a government report showed on Monday.
Core private sector machinery orders, which exclude volatile categories such as ships and utilities, stood at 752.5 billion yen (7.1 billion dollars), the Cabinet Office said.
The reading was better than the median forecast of a 0.2 percent decline by analysts surveyed by the Nikkei Business Daily, and followed a 6.3 percent rebound in July.
The reading in August showed “the fall is coming to an end,” the office said in a statement.
Compared with the same month last year, core machinery orders plummeted 15.2 per cent, the office said. The statistic is considered an indicator of future corporate spending.
Overseas demand, an indicator of future exports, surged 49.6 per cent month-on-month to 919 billion yen in August for the second consecutive month of increase, the office said.
Japan’s economy shrank a record annualized 28.1 per cent in the April-to-June period, the biggest fall in decades, marking the third straight quarterly contraction, as it was hit hard by the pandemic and a consumption tax increase last year.