Japan's core machinery orders edged down 0.4 percent from a month earlier to ¥835.6 billion in February, the government said Monday, indicating that some companies are reluctant to beef up investment as the economic outlook remains unclear.
The private-sector orders, excluding those for ships and from utilities because of their volatility, fell following a seasonally adjusted 1.7 percent drop in January and an 8.3 percent jump in December, the Cabinet Office said.
Core machinery orders are regarded as a leading indicator of capital spending. The figures are closely watched as Prime Minister Shinzo Abe views business investment — which accounts for around 15 percent of the nation's gross domestic product — as a pillar of economic growth necessary to tame deflation.