Japan’s machinery orders extend gains as business spending stabilises

TOKYO (Reuters) – Japan’s core machinery orders unexpectedly rose in August, extending gains and highlighting resilience in capital spending even as the economy remains under pressure from the coronavirus pandemic.

FILE PHOTO: A humanoid robot works side by side with employees in the assembly line at a factory of Glory Ltd., a manufacturer of automatic change dispensers, in Kazo, north of Tokyo, Japan, July 1, 2015. REUTERS/Issei Kato

The modest increase in core orders was a welcome sign of strength for the economy however, companies are still struggling from the hit to their corporate earnings.

Core machinery orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, grew 0.2% in August after a 6.3% rise in July.

The rise, which was due to strong orders for general production machinery as well as petroleum and coal products, was better than a

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