FX.co ★ Japan Machinery Orders Sink to Near 6-Year Low

In November 2025, Japan experienced an 11% decrease in its core machinery orders compared to the previous month, totaling ¥883.9 billion. This decline overturned a 7% increase observed in October and marked the most significant drop since April 2020, far exceeding the anticipated 5.1% decrease. Orders from the manufacturing sector decreased by 10.8% to ¥398.2 billion, while the non-manufacturing sector saw a 10.7% reduction to ¥492.9 billion. Among the industries, non-ferrous metals experienced the most substantial decline at 66.6%, followed by iron and steel (-37.9%), textile mill products (-33.4%), finance and insurance (-32.6%), and mining, quarrying of stone and gravel (-32.1%). On an annual basis, private-sector orders fell by 6.4%, a sharp contrast to the 12.5% rise in October and falling short of the projected 4.9% increase. Core machinery orders are generally regarded as a volatile yet crucial indicator of capital expenditure trends over the ensuing six to nine months.