June 09, 2010

April Machinery Orders Rose 4%

Japan's core machinery orders rose 4.0% in April, marking the second straight monthly gain after a 5.4% increase in March.

A 15.4% rise in orders from the transport industry was the major contributor. Distribution companies are looking to buy more trucks, suggesting that a recovery in corporate investment is spreading into wider industry segments. Firms in steel industries are beefing up their production capacities, giving a knock-on effect on domestic demand. Orders in the information services industry also rose by 16.9% as firms purchased communications equipment for business use.

Machinery orders account for about 15% of Japan's gross domestic product.

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