Core orders 2.9 mm vs 3.1 seen in Reuters poll
Cabinet Office leaves machinery orders assessment unchanged

TOKYO, June 17 Reuters Japan39;s core machinery orders fell in April for the first time in three months, government data showed on Monday, due to a pullback from the prior month39;s big jump, but the Cabinet Office said capital spending remained on track for a recovery.

The data followed the Bank of Japan39;s BOJ decision last week to start trimming its huge bond purchases, with it due to announce a detailed plan next month on reducing its nearly 5 trillion balance sheet.

Core orders fell 2.9 monthonmonth in April, versus a 3.1 decline expected by economists in a Reuters poll, the first drop in three months. It is a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months.

In March, there had been a 19.4 gain by manufacturers and a 11.3 decline by nonmanufacturers from the prior month.

The Cabinet Office left its assessment of machinery orders showing signs of picking up unchanged.

Taken together, the core orders are firming up and heading to a recovery due to demands related with inbound tourism and rising wages, said Takeshi Minami, chief economist at Norinchukin Research Institute.

We cannot expect much from overseas with the U.S. and European economies still struggling to cope with elevated interest rates and China grappling with its property market.

External orders, which are not included in the core…