Core machinery orders in Japan, which exclude those of ships and electrical equipment, unexpectedly rose 5.2 percent month-over-month in April of 2019 after a 3.8 percent increase in the previous month and compared to market expectations of a 0.8 percent drop. It was the strongest gain since last October, as manufacturing orders surged 16.3 percent after an 11.4 percent decline in March, mainly nudged by ship building (617.6 percent vs -89.2 percent) and other transport equipment (61.2 percent vs -38.4 percent). Also, orders rose markedly for food & beverages (18.1 percent vs 8.3 percent) and general purpose machinery (15.5 percent vs -7.6 percent). In contrast, non-manufacturing orders rose 1.2 percent after surging 13.4 percent. Year-on-year, core machinery orders climbed 2.5 percent after falling 0.7 percent in March. Machinery Orders in Japan averaged 0.28 percent from 1987 until 2019, reaching an all time high of 25.50 percent in October of 1996 and a record low of -17 percent in September of 2018.
Machinery Orders in Japan is expected to be -1.40 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Machinery Orders in Japan to stand at 0.30 in 12 months time. In the long-term, the Japan Machinery Orders is projected to trend around 0.20 percent in 2020, according to our econometric models.