Japan's machinery orders flat in September

Japan's machinery orders were almost unchanged in September compared to the previous month. Strong demand from the manufacturing sector was offset by sluggish orders from non-manufacturers.

The Cabinet Office said on Wednesday major machinery makers received orders worth about 7.3 billion dollars from domestic firms. That is down 0.04 percent in yen terms from August.

The data does not include orders from shipping companies and electric utilities that fluctuate widely.

Orders from manufacturers rose 24.8 percent, driven by strong demand from chemical makers.

Demand from non-manufacturers dropped 11.7 percent as wholesalers, retailers and telecom firms placed fewer orders.

The overall picture meant the Cabinet Office kept its assessment that the recovery is showing signs of stalling.

However, officials are predicting a 3.1 percent rise in machinery orders for the October-to-December period compared to the previous quarter.

They foresee more capital spending in the non-manufacturing sector after investment was deferred due to the coronavirus pandemic.