May 19, 2014 11:27 am JST

Japan's core machinery orders up 19.1% in March

TOKYO (Dow Jones) -- Japanese core machinery orders surged 19.1% in March from the previous month, the government said on Monday due to a spike in demand from the manufacturing sector.

     The rise was larger than expected by economists surveyed by The Wall Street Journal, who estimated on average that core orders increased 6.2% from the previous month.

     Unadjusted core orders also rose 16.1% from the year-earlier month.

     For the April to June period, the Cabinet Office said that orders are expected to rise 0.4% from the previous quarter, adding that machinery orders are "in an increasing trend."

     Machinery orders are widely regarded as a leading indicator of corporate capital investment. Core orders exclude those from electric power companies and those for ships.