Japan’s machinery orders rebounded in November, signaling that companies are willing to invest even as the yen remains strong and the global economy slows.
Bookings, an indicator of future capital spending, rose 15 percent in November from a month earlier, the Cabinet Office said in Tokyo today. The median estimate of 29 economists surveyed by Bloomberg News was for a 5.1 percent increase.
Weak overseas demand and gains in the yen have cut profits at Japanese exporters from Nippon Steel Corp. (5401) to Panasonic Corp. The rebound in orders signals that the world’s third-largest economy is showing some resilience to the stronger currency and a slowing global economy.
“Strong November data comes as a relief, bolstering confidence in the expansionary capex trend,” said Takuji Okubo, chief Japan economist at Societe Generale SA in Tokyo. Rebuilding from the March 11 earthquake means capital spending will be “resilient” in 2012, he said.
The yen reached a postwar record of 75.35 per dollar on Oct. 31. It traded at 76.84 against the dollar at 12:03 p.m. in Tokyo today and 97.15 against Europe’s shared currency after touching its highest since December 2000 earlier today. Standard & Poor’s downgraded France, Austria and seven other European nations last week.
