Japan's Machinery Orders Plummet Sharply, Far Worse Than Forecast

21:01 - 15.07.2026


July 15, Fineko/abc.az. In May, Japan's core machinery orders decreased by 12.4% month-on-month to ¥962 billion, far worse than the expected decline of 4.2% (following an 8.7% increase in April). This marks the third monthly drop since the beginning of the year and the sharpest contraction since December 2019.

According to reports, demand from the manufacturing sector shrank by 14.9%, led by a massive decline in shipbuilding (-80.5%), as well as contractions in the electronic and industrial equipment segments. In the services sector, orders fell by 9.3%, with notable weakness observed in real estate, transport, postal services, and leasing.

On an annual basis, the indicator slipped by 1.5% against an expected growth of 12.9%, marking the first year-on-year decline in six months. The latest data points to weakening corporate investment activity amid ongoing global economic uncertainty.