Japan’s total machinery orders rose 0.3% MoM in June 2025 but declined -5.3% QoQ in Q2, reflecting a broader pullback in capital investment.

• Core private-sector orders (excluding ships and electric power) increased 3.0% MoM in June and were up 0.4% QoQ in Q2, indicating some resilience in underlying domestic demand.

• Manufacturing orders fell -1.8% MoM, while non-manufacturing (ex-volatile) orders rose 1.8% MoM in June.

• Government orders surged 25.2% MoM, reversing declines in March and April, whereas foreign orders fell -6.4% MoM.

• Looking ahead, total machinery orders are forecast to rise 3.7% QoQ in Q3, but core private-sector orders are expected to decline -4.0% QoQ, suggesting softer private sector investment in the coming quarter.