Japan’s core machine orders, which exclude volatile sectors such as ships and electric utilities, rose by 5.2% month-on-month to JPY 1,069.8 billion in August 2026, reversing a 3.7% decline in the previous month and exceeding market forecasts for a 3% gain. It marked the fourth month of increase so far this year, supported by rebounds in both manufacturing orders (1.6% vs -1.0% in July) to JPY 527.0 billion and non-manufacturing orders (2.9% vs -2.6%) to JPY 541.3 billion. Among manufacturers, non-ferrous metals posted the strongest growth (132.6%), followed by other transport equipment (43.7%), petroleum and coal products (19.6%), and automobiles, parts, and accessories (13.1%). In the non-manufacturing sector, goods leasing (136.0%), wholesale and retail trade (29.2%), and mining and quarrying posted solid rises. On an annual basis, machinery orders increased by 18.6%, up from 11.2% in July and above consensus of 15.7%. It was the fastest yearly growth in six months.