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Japan's core machinery orders in March were less than expected last month, and the company expects investment to fall in April-June, underscoring the fragility of Japan's export-driven economic recovery.
But analysts say the data does not mean a significant change in Japan's capital spending growth trend. Japan's economy is recovering and capital spending has seen a moderately but generally growing trend.
The outside world that the mechanical order volatility is great, is to measure the next six to nine months of corporate capital expenditure of the leading indicators. Cabinet Office announced Wednesday that March core machinery orders increased 1.4% from the previous month, for the second consecutive month of growth, but lower than the Reuters survey analyst's estimate of 2.1%.
Companies that accept Cabinet visits are expected to include core machinery orders not including ships and electrical equipment, down 5.9 percent in April and June, down from 1.4 percent in the first quarter.
The weak outlook suggests that some companies are cautious about investing because the US President Trump's protectionist policy is uncertain about the impact of exports to Japan.
"The uncertainties of the global economy, Trump 's protectionist policies, and the political situation in Europe have made mechanical orders weak," said Nan Wu - zhi, chief researcher at the Institute of Agriculture and Forestry.
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