Japan’s core machinery orders surged 19.1% month-on-month to JPY1,052.5 billion in December 2025, rebounding from an 11% drop in November and sharply beating market expectations for a 4.5% increase. The reading marked the strongest growth in more than a decade, underscoring robust factory investment. The rebound was led by a 25.1% jump in manufacturing orders to JPY498.3 billion, while non-manufacturing orders advanced 8.2% to JPY533.1 billion. By industry, the largest increases were recorded in petroleum & coal products (499.9%), non-ferrous metals (207.1%), other non-manufacturing (83.5%), real estate (67.3%), and business-oriented machinery (67.1%). On a year-on-year basis, private-sector orders climbed 16.8% in December, reversing a 6.4% contraction in November and surpassing forecasts for a 3.9% rise. Core machinery orders are widely regarded as a volatile yet important leading indicator of capital expenditure over the next six to nine months.