Japanese Machinery Orders Unexpectedly Fall 5.4%

apanese machinery orders unexpectedly fell for a second month in February, a sign that the resurgence in overseas demand isn’t enough to compel companies to spend on plant and equipment.

“Companies’ growth expectations have come down” and they’re still burdened by excess capacity, Junko Nishioka, chief economist at RBS Securities Japan Ltd. in Tokyo, said before the report. “So the pace of a recovery in capital spending should be a bit slow this time, compared with those in the previous recovery phases.” The yen traded at 93.20 per dollar at 8:59 a.m. in Tokyo from 93.21 before the report was published. Read more