Japan’s core machinery orders likely fell in August, reversing the previous month’s gain as the coronavirus pandemic weighed on business investment.
Worsening earnings have discouraged businesses from investing, with the world third-largest economy only just emerging from its worst post war contraction.
Core machinery orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, likely slipped 0.9% in August from the previous month, the poll of 17 economists showed. The fall would follow a 6.3% gain in July.
The Bank of Japan’s corporate goods price index (CGPI), which measures the prices companies charge each other for goods and services, likely fell 0.5% in September from a year earlier, the poll found, reflecting weak domestic demand.