Japan’s Core Machinery Orders Up 2.6% In October: Official Data

According to the data released by the Cabinet Office Wednesday, Japan’s core machinery orders, which measure the change in the total value of new orders placed with machine manufacturers, excluding ships and utilities, rose to 2.6 percent in October from a 4.3 percent fall in September.

This report comes after it was revealed earlier this week that Japan's gross domestic product contracted in the third quarter in comparison with that in the previous quarter due to the soft global demand and the weakening domestic consumption.

According to the revised data released Monday by the Cabinet Office, Japan’s GDP, which measures the annualized change in the inflation-adjusted value of all goods and services produced by the economy, shrank to 0.9 percent in the quarter ending Sept. 30 from a 0.1 percent rise in the previous three months.

It was reported last month that Japan’s industrial output rose in October compared to that in the previous month. According to the data released by the Ministry of Economy, Trade and Industry, Japan’s industrial production, which measures the total inflation-adjusted value of output from manufacturers, mines, and utilities, rose 1.8 percent in October while it declined 4.1 percent in September.

Japan's monetary base rose in November compared to that in the same month last year, indicating that the monetary easing policies were leading to an increase in the amount of currency in circulation which in turn results in reviving economic growth. According to the data released last week by the Bank of Japan, the country’s monetary base, which measures the change in the total amount of domestic currency in circulation and current account deposits held at the central bank, advanced 5 percent in November while it posted a 10.8 percent rise in October.

Meanwhile, the policymakers in Japan are under pressure to further loosen the monetary policy to revive the economy. Last month, Japan faced a sudden development on the political scene with Prime Minister Yoshihiko Noda dissolving the Diet ahead of the general elections to be held Dec. 16. Investor confidence rose amid the hope that the main opposition, the Liberal Democratic Party, led by Shinzo Abe who is the proponent of aggressive monetary easing measures, would win the next elections.