Japan's Cabinet Office released its core machinery orders data on late Wednesday evening. Core machinery orders in Japan dropped 5.7% in August, missing expectations for a 3.2% rise, after a 3.6% fall in July.
On a yearly basis, core machinery orders slid 3.5% in August, missing expectations for a 4.2% increase, after a 2.8% gain in July.
This data indicates that capital spending in Japan is weaker than expected, and it could lead to the expansion of quantitative easing by the Bank of Japan.
Machinery orders declined 3.2% in August from a month earlier, driven by electronics, steel and car manufacturers.
Orders from non-manufacturers plunged 6.1% in August, driven by falls in orders from financial services and shipping.