Japan's core machinery orders and tertiary industry activity decline

Japan's core machinery orders fell in December the most since 1998, adding to concerns business investment growth could stall in coming months and weigh on a steady recovery in the world's number three economy. Orders for machinery, excluding ships and utility items, dropped 15.7% on a monthly basis in December, compared to the 9.3% surge in orders in November. According to the Cabinet Office, the decline reflected a pullback from gain a moth earlier, when there was a big order that exceeded 10 billion yen. While the gauge is a volatile indicator and is prone to considerable monthly fluctuations, the drop was sharper than economists' forecast for a 4.1% decline in orders. 

Core machinery orders are seen as an important gauge of future economic growth as companies build up capital stock to meet future demand, especially as Japan's government is carrying on a campaign to spur output.  

Meanwhile, Japan's tertiary industry activity index fell a seasonally adjusted 0.4% on month in December, coming in at 99.8 and missing analysts' expectations for a drop of 0.3%. Industries that experienced activity decline were retail trade, finance, real estate, personal services and utilities.