Japanese production machinery orders rose more than expected at the
end of the first quarter but the company expects orders to decline in
the second quarter because the company become more cautious due to the
strengthening of the yen and a slowdown in the export destination
countries.In January-March, core orders rose 6.7 percent from the previous three months. But in February, core bookings fell by 9.2 percent. At January to
March, core orders rose 6.7 percent from the previous three months.Compared with a year earlier, core orders, a highly volatile series of
data is regarded as an indicator of capital spending in the coming six
to nine months, up 3.2 percent in March, more than the median forecast
for a 0.8 percent increase Companies surveyed by the government, excluding ships and electric
utility company, estimates that the booking will fall 3.5 percent in
April-June quarter.Data showed that the company began to postpone their investment plans
due to uncertainty about overseas economies and signs that consumer
spending in the country is struggling to gain momentum.The Japanese company has a strong capital expenditure requirement for
many assets that are old and the industry needs to upgrade the facility
to make up for labor shortages.However, spending has been weak. Gross domestic product data for the first quarter this week showed
household spending do not have the power and capital expenditure down, a
worrying sign that domestic demand may falter.Orders production machinery is considered as an indicator of capital
spending in the coming six to nine months, up 3.2 percent in March, more
than the median forecast for a 0.8 percent increase.On
the first day G7 meeting in Sendai, Japan, members agreed to execute
the best policies are in accordance with the conditions of each country.
This is because some member states have fiscal constraints unlike other members. This topic responds to the request of Japan to formulate a coordinated fiscal action to boost global growth.Meneri G7 meeting is a meeting of finance and central bank officials
from the seven industrialized countries: Canada, Italy, France, Germany,
Japan, UK, and USA.Another topic that emerged from the meetings of the G7 is the stability of the currency market. Japan
signaling the need for intervention in yen trading, especially during
high volatility, to support export activities and economic recovery. But
for the US movement of the yen is appropriate so there is no reason to
intervene in the market to restrain the yen's strength.
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