Japan Machinery Orders

Japan’s core machinery orders, which exclude volatile sectors such as ships and electric power, jumped 4.2% month-over-month to ¥927.8 billion in September 2025, reversing from a 0.9% fall in August and exceeding market expectations for a 2.5% gain. The increase was led by the manufacturing sector, which jumped 23.3% to ¥515.2 billion, while non-manufacturing orders fell 8.7% to ¥428.3 billion. By industry, the largest advances came from chemical and chemical products (388.9%), pulp, paper and paper products (84.5%), other transport equipment (40.7%), mining and quarrying of stone and gravel (40.4%), and general-purpose and production machinery (29.7%). On an annual basis, private-sector orders grew 11.6% in September, accelerating from a 1.6% gain in August and beating forecasts of 5.4%. Core machinery orders are seen as a key yet volatile leading indicator of capital expenditure over the coming six to nine months.