Dec core order 2.7 mm vs f39;cast 2.5
Core orders 0.7 yryr vs f39;cast 1.4
Govt keeps view machinery orders are 39;stalling39;
JanMarch core machinery orders seen 4.6 qtrqtr

TOKYO, Feb 19 Reuters Japan39;s core machinery orders in December rose slightly more than expected but remained down yearonyear, government data showed on Monday, although further gains are expected to be capped by global and domestic headwinds.

Core orders, a highly volatile data series regarded as a leading indicator of capital spending in the coming six to nine months, went up 2.7 in December from the previous month, Cabinet Office data showed.

That compared with the median forecast for a 2.5 rise by economists in a Reuters poll.

On a yearonyear basis, core orders, which exclude volatile numbers from shipping and electric utilities, declined 0.7, smaller than the forecast 1.4 fall.

By sector, orders from manufacturers increased 10.1 in December from the previous month, lifted by chemicals industries and information and communication machinery. That followed a 7.8 decline in November.

Servicesector orders fell 2.2 after slipping 0.4 in the prior month, weighed down by a decline in orders from mail and transport as well as telecommunication industries.

For the January to March period, core machinery orders are expected to rise 4.6 quarteronquarter thanks to an increase in demand for motors and electronic and telecommunications equipment in unspecified industries, a Cabinet Office official…