July core orders 1.1 mm vs forecast 0.9
Orders from manufacturers 5.3, biggest drop in 8 months
Uncertainties overseas discourage investment decisions analyst
Batch of weak data raises challenge for economy, BOJ

TOKYO, Sept 14 Reuters Japan39;s core machinery orders fell more than expected in July, as manufacturers balk at new investments in the face of sluggish global growth and weakness in major market China, pointing to a difficult period ahead for the world39;s thirdlargest economy.

The Cabinet Office data released on Thursday comes on top of several other indicators over recent weeks that have raised the challenge for Japanese policymakers confronting soft demand overseas and at home.

Core orders, the leading indicator of Japanese business spending, were down 1.1 in July from the previous month, the data showed. The decline was bigger than a 0.9 drop expected by economists in a Reuters poll and followed a 2.7 gain in June.

Exportreliant manufacturers are hesitant at ramping up investments in the wake of anaemic Chinese economy and Western central banks39; relentless tightening, said Chisato Oshiba, economist at Daiichi Life Research Institute.

Manufacturers are eager to invest in their production facilities, but uncertainties overseas discourage their decisions … at least through September.

Orders from manufacturers fell 5.3 in July, the largest decline in eight months, due to weak demand for computers from industries including electric machinery, auto…