19.02.202600:20:20UTC+00Japan Machinery Orders Top Expectations

Japan’s core machinery orders jumped 19.1% month-on-month to ¥1,052.5 billion in December 2025, rebounding from an 11% decline in November and far exceeding market forecasts for a 4.5% rise. This was the strongest increase in more than a decade, highlighting solid factory investment.

The recovery was driven by a 25.1% surge in manufacturing orders to ¥498.3 billion, while non-manufacturing orders rose 8.2% to ¥533.1 billion. By industry, the largest gains were seen in petroleum & coal products (499.9%), non-ferrous metals (207.1%), other non-manufacturing (83.5%), real estate (67.3%), and business-oriented machinery (67.1%).

On a year-on-year basis, private-sector orders increased 16.8% in December, reversing a 6.4% decline in November and beating expectations for a 3.9% advance. Core machinery orders are widely viewed as a volatile but important leading indicator of capital expenditure over the next six to nine months.