Tokyo, Japan (4E) – Japan’s core machinery orders in September declined by a faster pace than expected, adding to concerns that the country has fell into recession.
The Cabinet Office on Thursday reported that orders for September fell 4.3 per cent from the previous month. The data is an indicator of capital spending in three to six months
The result is yet another weak economic figure from the world’s third largest economy. The country’s exports has also been hit by the slowdown in the global economy and the territorial disputes with China, which is Japan’s largest export market.
The Bank of Japan has earlier noted that the country’s trade balance is deteriorating as exports continue to drop, leading the current account toward deficit.
The country’s current account surplus in September fell to 503.6bn yen, a 68.7 per cent drop from the previous year, according to a separate report. The figure is lower than the estimated 761.8bn yen.
Analysts are closely looking into upcoming indicators since recent data has signalled that the country could be in the verge of slipping into recession.
Analysts estimate that the economy shrank by 3.4 per cent on an annualized basis in the three months ending September. An official report of gross domestic product will be released by the Cabinet Office on Nov. 12.