Machinery orders rose in May at their fastest pace in four months, government data showed Thursday in a sign that companies are increasing spending to restore businesses and production disrupted by the March 11 quake and tsunami.
Factory orders, an indicator of capital spending in three to six months, increased 3 percent in May from April, the Cabinet Office said, matching the median forecast of 31 economists.
Companies are forecasting profits to recover later this year and stepping up spending plans as manufacturers restore facilities and the government rolls out stimulus to rebuild from the disaster. Komatsu Ltd., the world's second-largest construction machinery maker, said reconstruction plans are spurring demand.
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