Japan’s core machinery orders, which exclude volatile sectors such as ships and electric utilities, jumped 9.7% month-on-month to JPY 1.06 trillion in June 2026, shifting from a 12.4% drop in the prior month and exceeding market forecasts of a 7.8% gain. It was the third time of increase so far this year, also marking the fastest pace since February, reflecting broad-based recovery in business investment. Orders from manufacturers bounced back 19.9% (vs -14.9% in May), while non-manufacturing orders improved (4.5% vs 9.3%). Among manufacturers, the strongest growth came from non-ferrous metals (225.3%), shipbuilding (94.9%), chemicals (39.0%), and petroleum and coal (32.9%). In the non-manufacturing sector, orders strengthened in real estate (253.1%), agriculture (33.0%), and mining, quarrying (23.7%). On an annual basis, machinery orders expanded 16.9%, swinging from May's 1.9% decline and topping estimates for a 10.8% rise and pointing to the fastest rise in four months.