Japan Machine Tool Orders Hit 2-Year Low in Feb.

Economy

Tokyo, March 12 (Jiji Press)--Orders for machine tools received by Japanese makers in February plunged 29.3 pct from a year before to 109.7 billion yen, down for five months in a row and slipping below 110 billion yen for the first time since January 2017, industry data have shown.

The decline came apparently because more and more Japanese companies are curbing investment in facilities and equipment amid uncertainties ahead partly reflecting lingering trade tensions between the United States and China.

Orders from abroad were down 29.8 pct at 68 billion yen as demand from China is believed to continue slumping, according to the preliminary data released by the Japan Machine Tool Builders Association on Monday.

Domestic orders dropped 28.4 pct to 41.6 billion yen, down for the third straight month. The pace of decline was larger than the 9.8 pct in December last year and the 15.9 pct in January this year.

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Jiji Press