2013.07.1105:11:18UTC+00Japan's core machinery orders blows away forecasts

Japan's core machinery orders skyrocketed an unexpectedly strong 10.5% in May from the previous month, the government announced Thursday, a sign that firms might be speeding up their investment plans as the economy progresses.

The improvement was bigger than expected by economists surveyed by Dow Jones Newswires and the Nikkei, who estimated on average that core orders bolstered 1.4% from April.

Unadjusted core orders also improves 16.5% from the year-earlier month.

Machinery orders are widely regarded as a leading indicator of corporate capital investment. Core orders exclude those from electric power companies and those for ships, which are often a source of volatility in the overall data due to their large size.

Recent data, including the Bank of Japan's closely watched Tankan survey released earlier this month, have shown businesses planning to spend more on investment in coming months.