Japan’s core machinery orders, which exclude volatile sectors such as ships and electric power, rose by 8.7% month-on-month to JPY 1,098.5 billion in April 2026, far exceeded market expectations for a 0.9% gain and marked a sharp rebound from the 9.4% decline recorded in March. The recovery was driven by a 5.1% increase in manufacturing orders to JPY 513.5 billion and a 6.7% rise in non-manufacturing orders excluding utilities to JPY 570.1 billion. Among manufacturers, strong gains were recorded in ship building (+160.7%), textile mill products (+61.7%), and non-ferrous metals (+51.3%). In the non-manufacturing sector, real estate (+107.7%), transportation and postal activities (+36.9%), and goods leasing (+32.7%) posted notable increases. On an annual basis, core machinery orders grew by 15.6%, beating market forecasts for a 9.3% gain and accelerating from a seven-month low of 5.9% rise in the preceding period.