Japan's Cabinet Office reported a 0.6% month-over-month decrease in core machinery orders for May, totaling 913.5 billion yen. This decline was less severe than the anticipated 1.4% drop and followed a significant 9.1% decrease in April. Annually, core machinery orders rose by 4.4%, surpassing the expected 3.4% growth, although it marked a slowdown from April's 6.6% increase.
Government orders showed robust growth, climbing 25.2% month-over-month and 36.9% year-over-year to reach 499 billion yen. In contrast, overseas orders fell by 6.4% from the previous month and 11.8% year-over-year, amounting to 1,263.3 billion yen. Projections for the second quarter of 2025 suggest a 2.1% quarter-over-quarter decline and a 1.0% year-over-year decrease in core machinery orders.
Total machinery orders received by 280 manufacturers operating in Japan increased by 3.8% from the previous month but decreased by 3.1% year-over-year, totaling 3,089.6 billion yen.
