April data shows stronger-than-expected business investment and export growth, easing concerns over Japan’s economic slowdown.
Japan’s core machinery orders surged 8.7% month-on-month in April, far exceeding expectations of a 0.9% gain and reversing a 9.4% decline in March. Year-on-year, orders rose 15.6%, beating forecasts of 9.3% growth.
Exports climbed 17.0% year-on-year in May, outpacing the 16.2% consensus and April’s 14.8% increase. Shipments to the EU, Asia, and the U.S. all accelerated, while imports grew 12.5%, slightly below the 12.8% estimate. The trade balance swung to a deficit of ¥378.7 billion, narrower than the ¥564.6 billion forecast.
The data suggests resilience in Japan’s manufacturing sector and external demand, despite broader economic challenges.