TOKYO: Japan's core machinery orders rose 2.3 percent in February from the previous month after seasonal adjustment, up for the second straight month, thanks to an increase in orders from the nonmanufacturing industry, the Cabinet Office said Wednesday.

Private-sector orders excluding those for ships and power equipment, closely watched as a leading indicator of corporate capital spending, totaled 858.5 billion yen.

The result beat a median estimate of a 2.9 percent decline in a Jiji Press survey of 18 economic research institutes.

"No abnormalities have been observed yet," a Cabinet Office official said of the possible impact from the spreading coronavirus outbreak.

Core orders from nonmanufacturers grew 5.0 percent, up for the first time in three months, led by rises in the transport and mail service industry as well as the construction sector.

By contrast, orders from manufacturers fell 1.7 percent due to the weakness of the chemical and other industries.

Overall machinery orders, including those from the public sector and abroad, dropped 6.9 percent to 2,221.8 billion yen.

The Cabinet Office kept its assessment unchanged, saying that machinery orders are at a standstill.

With companies carrying out capital investment in line with medium- and long-term business plans, negative effects from the coronavirus epidemic may become more visible after the start of fiscal 2020 in April.

JIJI Press