Japan August Core Machine Orders Rise 0.2%

The value of core machine orders in Japan gained a seasonally adjusted 0.2 percent on month in August, the Cabinet Office said on Monday - standing at 752.5 billion yen.

That beat forecasts for a decline of 1.0 percent following the 6.3 percent increase in July.

On a yearly basis, core machine orders sank 15.2 percent - beating expectations for a loss of 15.6 percent following the 16.2 percent drop in the previous month.

The total value of overall machinery orders received by 280 manufacturers operating in Japan increased by 19.8 percent on month in August and fell 16.5 percent on year.

Government orders were up 28.3 percent on month and down 19.4 percent on year at 267.7 billion yen, while overseas orders surged 49.6 percent on month and fell 7.4 percent on year at 919.0 billion yen and agency orders rose 0.5 percent on month and lost 18.1 percent on year at 99.9 billion yen.

For the third quarter of 2020, core machine orders are forecast to have fallen 1.9 percent on quarter and 15.5 percent on year.

Also on Monday:
• The Bank of Japan said that producer prices in Japan were down 0.2 percent on month in September, missing expectations for a flat reading following the downwardly revised 0.1 percent increase in August (originally 0.2 percent).

On a yearly basis, producer prices sank 0.8 percent - again shy of expectations for a loss of 0.5 percent, which would have been unchanged from the August reading.

Export prices were up 0.1 percent on month and down 1.5 percent on year, the central bank said, while import prices rose 0.2 percent on month and tumbled 10.1 percent on year.

• The BOJ also said that the value of overall bank lending in Japan was up 6.4 percent on year in September, coming in at 573.737 trillion yen. That was in line with expectations and down from the 6.7 percent gain in August.

Excluding trusts, bank lending was up an annual 6.2 percent to 498.718 trillion yen, slowing from the 6.6 percent increase in the previous month.

For the third quarter of 2020, overall bank lending was up 6.5 percent on year; excluding trusts, it was up 6.4 percent on year.