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Japan Machinery Orders Slump, Signal Weak Investment

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Core (Berlin: LJ1.BE - news) machinery orders fell 8.2 percent in July from the previous month due to declines in orders from manufacturers and service sector firms, Cabinet Office data showed on Thursday. That compared with a median market forecast for a 4.1 percent decline and follows a 7.7 percent rise in June.

Compared with a year earlier, core orders increased 4.0 percent in June, much less than an 8.5 percent rise expected by economists.

"Capital spending remains on a recovery trend, although the overseas slowdown and a possible delay in Japan's post-quake reconstruction are a concern," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.

Japan's current account surplus fell 42.4 percent in July from a year earlier, Ministry of Finance data showed, more than a median forecast for a 31.3 percent decline. The surplus stood at 990.2 billion yen (8.0 billion pound), against a median forecast for a 1.18 trillion yen surplus.

Japanese policymakers and private-sector economists expect Japan's economy will recover in the latter half of the current fiscal year that ends in March, counting on export growth and post-quake reconstruction demand.

Risks to this scenario are growing due to signs of a global economic slowdown and worries about a delay in legislation needed to fund reconstruction spending.

Is Japan still suffering rolling power cuts?

And Fukushima is still a problem which is still no where near being fixed.

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  • 439 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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