AI Data Insight
In May 2026, Japan's private-sector machinery orders fell to 1,262.6 billion yen, a sharp decline of 26.0% from the previous month. The reversal from the high base of large-scale orders in the shipbuilding and transportation industries was the primary cause of this plunge. Core machinery orders, excluding ships and electric power, also dropped 12.4% month-on-month, a deeper decline than expected, indicating that the pace of Japanese corporate capital expenditure is turning conservative.