29 July 2005, 09:51  Japan June orders received by 50 largest contractors down 5.2%

The value of construction orders received in June by the 50 largest contractors in Japan fell 5.2 pct from a year earlier to 1.05 trln yen, only the second decline in 13 months, the Ministry of Land, Infrastructure and Transport said. The drop was due to a decline in orders from domestic manufacturers and non-manufacturers, the public sector and from abroad, the data showed. Domestic manufacturers' orders dropped 0.4 pct to 148.9 bln yen, while orders from non-manufacturers declined 2.3 pct to 623.9 bln yen. Overall domestic private-sector orders fell 1.9 pct to 772.8 bln yen. Public-sector orders declined 6.8 pct to 176.8 bln yen, the 11th drop in 15 months, the result of reduced spending on public works by the deficit-ridden government. And overseas construction orders dropped 32.5 pct to 53.3 bln yen, the eighth decline in 10 months. Overall construction orders rose 0.5 pct in May, 7.5 pct in April and 22.5 pct in March. They fell 14.8 pct in February and rose 15.8 pct in January. In 2004, orders rose 4.2 pct, the first increase in four years. A pick-up in private-sector spending, particularly by companies building new factories and offices, had been fueling the increase.

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