Japan's core machinery orders increased far more than expected in January

The data released by the Cabinet Office of Japan on March 12 showed that the country’s core mechanical order rate rose by 3.4% in January, suggesting that reconstruction work in the earthquake-stricken area last year may support capital expenditures.

In January, the monthly increase in core machinery orders was more than twice the market's median forecast. The median market forecast was a 1.6% increase on the monthly rate. In December, the monthly rate decreased by 7.1%.

The data also showed that Japan’s core machinery orders increased at an annual rate of 5.7% in January, which was higher than the projected growth of 4.0%.