High demand for semiconductor manufacturing equipment and other devices has led to a 10% rise in Japan's private-sector machinery orders in August, reports the Wall Street Journal.
The rise is good news for the nation's economy, which depends on exports of its high-tech capital goods to fuel growth, says the Journal. But an appreciating currency global economic uncertainties could hamper further plans for more investment. The Journal notes that figures from the Bank of Japan showed that bank lending continued to fall in September as demand for investment funds remained low, a sign that broader corporate spending won't be on the upswing anytime soon.
Citing Takashi Wada, a cabinet office parliamentary secretary, the Journal says general optimism on business investment is still premature because of a rising yen and modest gains in non-manufacturing sectors.
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