2026.10.1500:08:57UTC+00Japan Machinery Orders Rebound More than Expected

Japan’s core machinery orders—excluding volatile categories such as ships and electric utilities—rose 5.2% month-on-month in August 2026 to JPY 1,069.8 billion. This increase reversed a 3.7% decline in July and exceeded market expectations for a 3.0% rise. It was also the fourth monthly gain so far this year, underpinned by recoveries in both manufacturing and non-manufacturing demand.

Manufacturing orders climbed 1.6% in August, rebounding from a 1.0% drop in July, to reach JPY 527.0 billion. Non-manufacturing orders rose 2.9%, reversing a 2.6% decline in the previous month, to JPY 541.3 billion.

Within manufacturing, non-ferrous metals saw the strongest growth, surging 132.6%. This was followed by other transport equipment (up 43.7%), petroleum and coal products (up 19.6%), and automobiles, parts, and accessories (up 13.1%). In the non-manufacturing sector, goods leasing recorded a sharp rise of 136.0%, while wholesale and retail trade increased 29.2%. Mining and quarrying also posted robust gains.

On a year-on-year basis, core machinery orders advanced 18.6% in August, accelerating from 11.2% in July and beating the market consensus of 15.7%. This was the fastest annual growth in six months.