Japanese Machine Tool orders drop on global economic slowdown

© scanpix/reuters

Japanese machinery orders tumbled more than forecast in September, one more indicator signaling that the Japan's economy is falling into recession on disagreements with China and declining domestic demand. Current account surplus, one of the main indicators tracking the nation's well-being, also slipped paring with a slump in exports. According to government data on Thursday, core machinery orders also plummeted 4.3% in September, while analysts had expected a decline of 1.8%.

"Manufacturers expect machinery orders to rise 5% in October-December, but given weakness in external demand, that may be tough to achieve as capital spending will weaken toward the year-end," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.