FX.co ★ Japan’s Core Machinery Orders Slide 5.5% in January, Reversing December Surge

Japan’s core machinery orders dropped 5.5% month-over-month in January 2026, sharply reversing a strong 19.1% rise recorded in December 2025, according to data updated on 18 March 2026.

The core machinery orders series, a key leading indicator of corporate capital spending, shows that after a powerful rebound in December, Japanese firms scaled back new machinery bookings at the start of the year. On a month-over-month basis, the latest figure reflects a clear pullback in investment appetite compared with the previous month’s surge.

The December 2025 reading, which had climbed 19.1% from November, suggested robust short-term momentum in corporate investment plans. January’s -5.5% result indicates that some of that strength has unwound, with businesses appearing more cautious as they entered 2026. The comparison is based on month-to-month changes, with the “actual” January figure measured against December 2025, and the “previous” December figure measured against November 2025.