Japan's leading
indicator of capital spending probably fell in May for the first time in
three months, but analysts believe the decline will be temporary and
firms' business investment will remain solid, buoyed by strong earnings,
a Reuters poll showed.
Separate
data will likely show the nation logged its eleventh straight monthly
current account surplus in May as a soft yen boosted income from
overseas investments and an increase in the number of foreign tourists
helped to improve the balance on services.
Core machinery orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, is forecast to have slipped 5.0 percent in May, the Reuters poll of 21 economists showed.
From a year ago, core orders probably jumped 16.3 percent, according to the poll, after a 3.0 percent rise in April.
"The latest data from the Bank of Japan raised expectations for a full-fledged recovery in firms' capital spending," said an analyst at Mizuho Research Institute in the survey.
"We see the rising trend in machinery orders will continue but they probably fell in May after two straight monthly gains."
The BOJ survey showed last week big Japanese companies plan to raise capital expenditure by 9.3 percent in the fiscal year from April, the fastest pace in a decade.
The poll found the current account surplus stood at 1.542 trillion yen ($12.52 billion) after a 1.326 trillion yen surplus in April.
"The current account balance probably stayed in surplus on an improvement in income surplus on the back of solid share prices in the United States and an increasing foreign tourists," said an analyst at Japan Research Institute.
The corporate goods price index (CGPI), which will be released on July 10, is seen to have fallen 2.3 percent in June from a year earlier, the poll showed, after a 2.1 percent fall in May.
The Cabinet Office will announce the machinery order data at 8:50 a.m. on July 9 (2350 GMT on July 8) and the finance ministry will release current account balance figures at 8:50 a.m. on July 8 (2350 GMT on July 7).
Core machinery orders, a highly volatile data series regarded as an indicator of capital spending in the coming six to nine months, is forecast to have slipped 5.0 percent in May, the Reuters poll of 21 economists showed.
From a year ago, core orders probably jumped 16.3 percent, according to the poll, after a 3.0 percent rise in April.
"The latest data from the Bank of Japan raised expectations for a full-fledged recovery in firms' capital spending," said an analyst at Mizuho Research Institute in the survey.
The BOJ survey showed last week big Japanese companies plan to raise capital expenditure by 9.3 percent in the fiscal year from April, the fastest pace in a decade.
The poll found the current account surplus stood at 1.542 trillion yen ($12.52 billion) after a 1.326 trillion yen surplus in April.
"The current account balance probably stayed in surplus on an improvement in income surplus on the back of solid share prices in the United States and an increasing foreign tourists," said an analyst at Japan Research Institute.
The corporate goods price index (CGPI), which will be released on July 10, is seen to have fallen 2.3 percent in June from a year earlier, the poll showed, after a 2.1 percent fall in May.
The Cabinet Office will announce the machinery order data at 8:50 a.m. on July 9 (2350 GMT on July 8) and the finance ministry will release current account balance figures at 8:50 a.m. on July 8 (2350 GMT on July 7).
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