Core machinery orders in Japan, which exclude those of ships and electrical equipment, increased 1.8 percent month-over-month in February of 2019 after a 5.4 percent drop in the previous month and below market expectations of a 2.5 percent climb. It was the first gain in core machinery orders in four months. Manufacturing orders rose 3.5 percent after a 1.9 percent decline in January, mainly nudged by an 80.1 percent jump in petroleum & coal products and a 44.8 percent climb in fabricated metal products. On the other hand, non-manufacturing orders edged down 0.8 percent after an 8.0 percent decline. Year-on-year, core machinery orders retreated 5.5 percent after falling 2.9 percent in January. Machinery Orders in Japan averaged 0.26 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.