Japan’s core machinery orders, which exclude volatile sectors such as ships and electric power, increased 13.6% month-over-month to JPY 1,115.9 billion in February 2026, reversing a 5.5% decline in the prior month and beating market expectations for a 1.1% drop. Manufacturing orders jumped 30.7% to JPY 569.5 billion, boosted by solid growth across key industries, including non-ferrous metals (419.1%), ship building (127.7%), chemical and chemical products (91.6%), other transport equipment (57.2%), pulp, paper and paper products (30.1%), autos, parts and accessories (20.9%), and petroleum and coal products (17.3%). Meanwhile, non-manufacturing orders rose 0.8% to JPY 568.4 billion, much slower than a 6.8% increase in January. On an annual basis, core machinery orders grew 24.7%, accelerating sharply from a 13.7% gain previously and easily beating forecasts for 8.5%.
