Japanese Machine Orders Drop

apan’s core machinery orders fell more than expected and a central banker warned of headwinds from soft overseas growth, underscoring the difficulties of sustaining the economic recovery Prime Minister Shinzo Abe’s stimulus policies generated.

Board member Ryuzo Miyao stressed the Bank of Japan’s readiness to loosen monetary policy again should the global economy and domestic wages fail to pick up, forcing a change to the central bank’s upbeat economic forecasts.

“I see risks somewhat tilted toward the downside for both the economy and prices,” said Miyao, who is among those in the nine-member board relatively pessimistic about the outlook.

“If the BOJ were to act again, it won’t rule out any policy steps in advance,” he told a news conference on Wednesday after meeting with business leaders in Matsumoto, northwestern Japan.

Miyao’s comments came after data showed core machinery orders, a volatile series regarded as a leading indicator of capital expenditure, fell 2.1 percent in September, more than a median market forecast for a 1.4 percent drop.

via Reuters

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