Seasonally adjusted core machinery orders grew 3.4% in November from the previous month in the private sector, marking a rise for a second straight month, the Cabinet Office said Monday.

Core machinery orders excluding those for ships and power equipment — which are closely watched as a leading indicator of corporate capital investment — totaled ¥899.6 billion ($5.77 billion), it said.

November's growth, which followed a 2.1% core increase the previous month, came against a median forecast of a 0.4% drop in a Jiji Press poll of 16 economic research institutes.

The Cabinet Office has upgraded its basic order trend assessment for the first time in eight months, saying that machinery orders are showing signs of picking up.

A breakdown showed orders from manufacturers rose 6.0% to ¥462.9 billion after advancing 12.5% in October.

Orders increased in seven of the 17 manufacturing industries surveyed.

In particular, dynamo demand from chemicals producers and engine demand from shipbuilders were brisk.

By contrast, demand for boilers and turbines fell noticeably in the pulp and paper sector.

Core orders from nonmanufacturers went up 1.2% to ¥453.7 billion following a 1.2% decline, led by strong demand for computers from information services companies and financial firms including insurers.

Overall machinery orders, covering those from the public sector and abroad, fell 14.4% to ¥2,981.7 billion after a 21.1% jump.

"Capital investment-related indicators are becoming rosier," said Takeshi Minami, chief economist at the Norinchukin Research Institute.

But Minami also suggested the possibility of exporters refraining from actively placing orders to assess the impact of incoming U.S. President Donald Trump's tariff policy after his inauguration in Washington on Monday.