The sensitive period of the Japanese engineering machinery industry in February        

Data released by Japan's cabinet office on 11 may show that the core machinery orders in February were down to 9.2% to 848 billion 700 million yen (about 7 billion 900 million U.S. dollars) after seasonal adjustment.

This is the first time that the target has been declining for the first time in three months. The government has maintained a basic assessment of the target, saying it is "showing signs of rise."

Specifically, the manufacturing sector in February core machinery orders fell significantly, a sharp drop in 30.6% to 321 billion yen, has a larger gap than in January rose 41.2% qoq. The core order of the iron and steel sector is shrinking by 92.7%, which is the main factor of the index. In addition, the non manufacturing core machinery orders increased by 10.2% to 531 billion yen, rising for the three month in a row.

Data also showed that in February, the overseas machinery orders showing Japan's future export situation increased by 6.3% to 726 billion 700 million yen, ending the three consecutive month of decline.

Some economists believe that although the Bank of Japan's negative interest rate policy helps to stimulate investment in enterprises, but because domestic demand is still weakening, the yen is also strong in the near future, and the confidence of enterprises is obviously insufficient, and the future capital expenditure is more prudent.

The Japanese core machinery order is the first economic indicator to show the future enterprise investment, and the government regards the enterprise investment as one of the driving forces to boost the economy.