NEWS: Japan's machinery orders point to a decline in capital expenditure

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Japanese machinery orders fell for the first time in three months in December as trade frictions put pressure on global demand. Manufacturers expect orders to fall further this quarter.
Core machinery orders fell by 0.1% month-on-month, considered the leading indicator of capital expenditure, below the median forecast of 1.1%.
Manufacturers surveyed by the Cabinet Office forecast that core orders from January to March will fall by 1.8% after falling by 4.2% from October to December. The Cabinet Office has cut back its evaluation of orders, saying they are delaying.
Overseas machinery orders fell 21.9% in December compared with last month due to concerns about falling global demand.
Global trade has slowed down as the United States and China exchange tit-for-tat tariffs in fierce trade disputes. Without a resolution between Washington and Beijing, the proposed introduction of further tariffs would damage Japan's export-oriented economy.
Manufacturers'orders fell 6.4% in November, compared with 8.5% in December, as orders from manufacturers of manufacturing equipment and electronics fell.


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