Japan's machinery order down record 19.5 pct in May

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Core private-sector machinery orders declined by a record 19.5 percent in Japan in May, exposing that sales tax hike on April 1 has impacted on companies to refrain from enlarging investment, the government said Thursday.

The orders that exclude those for ships as well as from utilities fell following a seasonally adjusted 9.1 percent drop in April, after rocketing 19.1 percent in March, said the Japan's Cabinet Office.

The value of the orders dropped to 685.3 billion yen (around 6. 75 billion U.S. dollars), the smallest since January 2013, and prompted the government to downgrade its basic assessment of the orders, it said.

The orders are at a "standstill in their growth trend," while last month they were "on a growth trend," local media reported, citing the office.

Orders from the manufacturing sector in the reporting month plunged 18.6 percent from the previous month to 283.5 billion yen (about 2.79 billion dollars), while those from non-manufacturers fell 17.8 percent to 427.0 billion yen (about 4.20 billion dollars) .

Overseas demand for Japanese machinery largely tumbled 45.9 percent to 873.7 billion yen (about 8.60 billion dollars), following a-71.3 percent surge in April. Endi

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