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"Nobody is really forecasting Europe will break up"
- Takuji Okubo, chief Japan economist in Tokyo at Societe Generale SA
Japan's machinery orders decreased for the second straight month in October amid slowing global economy and strong Yen. Bookings declined 6.9 percent in October after sliding 8.2 percent in September, said the Cabinet Office on Thursday.
"Nobody is really forecasting Europe will break up, but corporate managers have to prepare for the worst," said Takuji Okubo, chief Japan economist in Tokyo at Societe Generale SA. "It's understandable that they would like to delay large capital investment decisions."
"The decline in machinery orders reflects a slowdown in overseas economies. Also, on the supply side, floods in Thailand hurt the supply of parts for manufacturers," said Hiroaki Muto, senior economist at Sumitomo Mitsui Asset Management in Tokyo.