Japan’s total machinery orders rose 7.3% MoM in August 2025, rebounding from July’s -4.2% drop and signaling a modest recovery in investment momentum.

• Core private-sector orders (excluding ships and electric power) fell -0.9% MoM, reversing part of July’s 3.0% gain and underscoring continued weakness in underlying domestic demand.

• Manufacturing orders declined -2.4% MoM, following +3.9% in July, reflecting reduced capital investment activity in the sector.

• Non-manufacturing (ex-volatile) orders decreased -6.4% MoM, after +8.8% in July, suggesting a pullback in service-related investment.

• Government orders dropped -41.4% MoM, extending June’s -11.9% fall and highlighting ongoing volatility in public-sector spending.

• Overseas orders surged +28.4% MoM, reversing July’s -8.4% decline, indicating a rebound in external demand for Japanese machinery.

• Orders through agencies fell -11.5% MoM, after +5.1% in July, pointing to weaker domestic intermediary activity.

• On a quarterly basis, total machinery orders are forecast to rise +3.7% QoQ in Q3 2025, though core private-sector orders are expected to contract -4.0% QoQ, suggesting a mixed recovery across demand segments.