Japan core machinery orders fall as demand uncertainty sets in

TOKYO (Jan 16): Japan's core machinery orders fell in November at the fastest pace in seven months in a sign that some companies may be turning cautious about capital expenditure because of uncertainty over domestic and overseas demand for goods and services.

Core orders, a highly volatile data series regarded as a leading indicator of capital expenditure, fell 5.1% in November from the previous month, Cabinet office data showed on Monday, more than the median estimate for a 1.7% decline.

Many economists originally forecast that capital expenditure would gradually increase this year, but growing concerns that US President-elect Donald Trump may adopt protectionist trade policies could cause companies to scale back investment.

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