By Mike “Mish” Shedlock
Bloomberg reports Japan Machinery Orders Fall 13% in Sign of Limits on Investment.
The decline from the previous month, announced by the Cabinet Office today in Tokyo, compared with the median estimate in a Bloomberg News survey of 26 economists for a 1.7 percent fall.
Today’s data are a reminder that business investment will not drive the recovery, said Izumi Devalier, a Japan economist at HSBC Holdings Plc in Hong Kong.
“Looking ahead, we expect accelerating consumption, residential and public investment,” Devalier said. Devalier cautioned against reading too much into a single month of “very volatile” data.
I understand the caution about volatility of large orders, but the rest of what Devalier says is suspect.