July 09, 2015
Summary
◆According to statistics for machinery orders in May 2015, the leading indicator for domestic capex, private sector demand (excluding shipbuilding and electrical power), were up by +0.6% m/m, while at the same time exceeding market consensus (-4.9%).
◆Looking at orders by source of demand, the manufacturing industries achieved growth for the third consecutive month at +9.9% m/m. The Iron and steel industry recorded major growth of +969.4% m/m, most likely due to special factors, hence the fact that overall results were raised significantly by this number should be taken with a certain grain of salt. However, even when this number is removed from overall results, the manufacturing industry continues to move upwards. Non-manufacturing orders (excluding shipbuilding and electric power) suffered a m/m decline for the second consecutive month at -4.0%. A wide range of industries suffered declines, creating the sense that non-manufacturing was taking a breather from its recent momentum.
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