Japan Machine Tool Orders Dive on Trade Woes
Tokyo, Nov. 21 (Jiji Press)--Machine tool orders in Japan plunged 37.4 pct in October from a year before, hitting a nine-year low for the month as companies remained cautious about capital spending due to concerns over the U.S.-China trade war, industry data showed Thursday.
Orders dropped to 87.45 billion yen, marking their 13th straight month of decline and lowest level for October since 80.23 billion yen recorded in 2010, the Japan Machine Tool Builders' Association said.
Overseas orders fell 34.1 pct to 54.03 billion yen due to increased trade tensions between Washington and Beijing and uncertainties over Britain's exit from the European Union.
Domestic orders dropped 42.0 pct to 33.42 billion yen, dampened chiefly by the Oct. 1 consumption tax increase.
Machine tool orders are expected to remain sluggish at least until next spring, said Yukio Iimura, chairman of the association and chairman of Toshiba Machine Co. <6164>.
[Copyright The Jiji Press, Ltd.]