Japan Machinery Orders January 2008

Japanese machinery orders rose at the fastest pace in seven years in January, a sign that demand from emerging markets may offer some kind of support for Japan's export driven economy during difficult times. Equipment orders jumped 19.6 percent from December, when they dropped 3.2 percent, the Cabinet Office said today in Tokyo.




Machinery orders,which give some indication of capital spending over the next three to six months, had previously declined for two consecutive months until January's rebound. Manufacturing-equipment orders climbed 13.8 percent from a month earlier, the Cabinet Office said. Non- manufacturing orders surged 21.9 percent.


The trend toward mailand Japan factory building continues with news today that central Motor Co., a Toyota subsidiary, plans to build a 49 billion yen ($480 million) factory in Sendai, northern Japan. This will be Toyota's first new assembly plant built in Japan since 1993, and will employ 1,200 people. Honda also intends to spend 50 billion yen on a new factory to make low-cost cars for emerging markets, according to the Nikkei newspaper yesterday.