Japan Core Machinery Orders Drop 8.2% in July

Japan's core machinery orders decreased 8.2 % in July from the previous month, in a sign companies remain hesitant about boosting capital spending due to the yen's strength and slowing global growth.

The fall was much bigger than economists' median forecast.Compared with a year earlier, core orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, increased 4.0% in July.

Manufacturers surveyed by the Cabinet Office have forecast that core orders will rise 0.9% in this quarter from the previous quarter.The government maintained its assessment of machinery, orders, saying they are in a recovery trend.