Japan’s core machinery orders fell by 2.9% in April, marking the first decline in three months according to government data. Despite this setback, the Cabinet Office remains optimistic about the overall trajectory of capital spending in the country.
This news comes on the heels of the Bank of Japan’s recent decision to reduce its bond purchases, a move that signals a shift in monetary policy. The central bank is expected to outline a more detailed plan for reducing its massive $5 trillion balance sheet in the upcoming month.
While the decrease in core machinery orders may raise some concerns, it is important to note that this data is known for its volatility and is typically seen as a leading indicator of future capital spending trends. Overall, the Japanese economy continues to show signs of resilience and recovery despite occasional fluctuations in key indicators.