Japan took another step forward to cementing a durable economic recovery, as core machinery orders rose in August to their highest level since the global financial crisis, a welcome sign for achieving sustainable growth.
The 5.4 percent month-on-month rise in core orders, which exclude those for ships and electric power utilities, was the first rise in three months, data from the Cabinet Office showed on Thursday.
The reading also beat economists' median forecast for a 2.0 percent gain, and followed a slight fall in July.
The value of core orders reached 819 billion yen ($8.4 billion), the biggest since the September 2008 collapse of U.S. investment bank Lehman Brothers triggered the global recession.
The outcome is an encouraging sign for Prime Minister Shinzo Abe, who is hoping the positive mood generated by his reflationary policies, dubbed "Abenomics", will lead to a virtuous cycle of higher capital spending, growth in wages and private consumption.
Source: Reuters
