Japan Machinery Orders Unexpectedly Rise In March

5/15/2011

(RTTNews) - Core machinery orders in Japan posted a surprise rise in March, in spite of the devastating earthquake and tsunami on the 11th, the Cabinet Office said on Monday, climbing a seasonally adjusted 2.9 percent compared to the previous month.
That blew away analyst expectations for a decline of 10.0 percent following the 2.3 percent contraction in February.
As a result of the data, the Cabinet Office maintained its assessment of machinery orders, saying "Machinery orders are picking up, but there are weak spots in the non-manufacturing sector."
On an annual basis, machine orders also surprised to the upside by adding 6.8 percent versus forecasts for an 8.0 percent plunge following the 7.6 percent increase in the previous month.
For the first quarter of 2011, machinery orders were up 3.5 percent compared to the previous three months. For the fiscal year ended in March, machinery orders climbed 7.0 percent on year.
For the second quarter of 2011, core machinery orders are forecast to have jumped 10.0 percent compared to the previous quarter, based on the figures from the 280 manufacturers reflected in the data.
The total number of machinery orders, including those volatile ones for ships and from electric power companies, saw a decline of 15.8 percent on month in March and an increase of 11.5 percent on quarter in Q3. For the fiscal year, total machinery orders jumped an annual 20.0 percent.
Manufacturing orders saw a decline of 0.4 percent on month, while government orders fell 10.3 percent. Orders from overseas plunged 11.4 percent on month, while orders from agencies added 2.6 percent.
Also on Monday, the Bank of Japan said that an index measuring prices for corporate goods in Japan was up 0.9 percent in April compared to the previous month, standing at 105.6. That was well above analyst expectations for an increase of 0.4 percent following the 0.6 percent gain in March.
On an annual basis, corporate goods prices jumped 2.5 percent - again topping expectations for an increase of 2.1 percent after adding 2.0 percent in the previous month.
Export prices rose 2.2 percent on month but fell 3.0 percent on year, while import prices surged 5.5 percent on month and 9.1 percent on year.