Japan’s core machinery orders in March 2026 declined 9.4% from the previous month to ¥1.01 trillion ($6.4 billion), government data showed May 21 [1, 2]. The drop followed two consecutive quarters of growth, with core machinery orders rising 6.4% in the January-March quarter to ¥3.1 trillion [1].
Core machinery orders, which exclude ships and power equipment and serve as an indicator of corporate capital spending, showed a mixed picture in March [1, 2]. Manufacturing sector orders fell sharply by 14.2% month-on-month to ¥488.4 billion, while nonmanufacturing orders slipped 6.0% to ¥534.3 billion [1, 2]. Despite the monthly declines, year-on-year core orders for March increased 5.9%, outperforming some analyst forecasts [2]. Manufacturing machinery orders rose 11.5% year-on-year, with nonmanufacturing orders up 4.8% [2].
Total machinery orders, which include the public sector and overseas demand, gained 4.3% in March to ¥3.9 trillion, reflecting broader strength despite the core machinery softness [1]. For fiscal year 2025 (April 2025 - March 2026), core machinery orders rose 8.6% from a year earlier to ¥11.6 trillion, marking the highest level since comparable data began in 2006 [1].
The Cabinet Office noted there was no clear sign that geopolitical tensions in the Middle East had influenced machinery orders in March. A Cabinet Office official said, "There’s not a movement from which we can clearly discern the influence of the Middle East situation" [1].
Looking ahead, core machinery orders are expected to increase only slightly by 0.3% in the April-June 2026 quarter, suggesting a moderation in capital spending growth [1]. The March data were published by the Cabinet Office on May 21 [1, 2].
