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2026.05.2023:50:00UTC+00Japan’s Core Machinery Orders Growth Cools Sharply in March YoY, Signalling Investment Slowdown

Japan’s core machinery orders growth decelerated sharply in March 2026, suggesting a loss of momentum in corporate capital spending after a strong surge in the previous month.

Year-over-year, core machinery orders rose 5.9% in March 2026, down markedly from a 24.7% increase in February 2026. The data, updated on 20 May 2026, compare each month’s figures with the same month a year earlier, highlighting a significant cooling in the pace of expansion.

While the indicator remains in positive territory, the steep slowdown from February’s robust gain may raise concerns about the durability of business investment, a key driver of Japan’s economic outlook. Investors and policymakers will be watching upcoming data to gauge whether March represents a temporary pause or the start of a more persistent moderation in capital expenditure.

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