September machinery orders fell more than economists expected, a sign companies may pare spending in the coming months as demand wanes.

Orders declined a seasonally adjusted 7.6 percent to ¥958.7 billion from August, the lowest since May 2005, the Cabinet Office said Thursday. The median estimate of 41 economists was for a 1.5 percent drop.

Slowing overseas demand and sluggish consumer spending at home may prompt businesses to reduce investment in factories and equipment, cooling growth in the economy.