Machinery Orders Fall

The Cabinet Office reported today that total machinery orders from 280 manufacturers declined by a seasonally adjusted 6.8% to 2.4 trillion yen in December from the previous month, but rose 2.5% to 7.9 trillion in the quarter to December compared to the previous quarter.

Total machinery orders from January to March are forecasted to rise 10.2% to 8.7 trillion yen. Private sector machinery orders, excluding volatile ones, fell a seasonally adjusted 3.2% in December to 1 trillion yen and increased 0.9% to 3.1 trillion yen in the quarter to December. Overall private sector orders fell 4% in 2007.

Orders are also forecasted to jump 3.5% to 3.2 trillion yen in the three months to March.

Machinery orders for the non-manufacturing sector declined 5.2% in December to 541 billion yen and edged down 2.7% to 1.66 trillion yen in the quarter ended December 31st.

In 2007, non-manufacturing orders fell by 4%. However, orders in the sector are expected to rebound 3.1% to 1.7 trillion yen between January and March.

Government orders rose 8.8% to 729 billion yen, in the three months to December, while during the quarter to March orders are expected to soar 19.6% to 872 billion yen. In December 2007 orders declined 19% to 218 billion yen.

Cumulatively, government orders declined 1.1% in 2007.

Overseas orders plummeted 4.9% to 1 trillion yen in December and rose 1.3% in the quarter to December, but rose 1.3% between October and December 3.3 trillion yen. Orders are forecasted to rise 17.9% to 3.9 trillion yen in the three months to March.

Overall, overseas orders rose 7.2% in 2007.

Tokyo Office Vacancies Fall

The Japan Times online edition reported today that Miki Shoji Co. said yesterday in a report Tokyo office vacancies dropped for the first time in six months in January to a seven-year low as vacancy rates in five central wards fell to 2.55% in January from 2.65% in December.

According to the report, despite the slowing economic growth, rents continue to increase on shortages of Grade A offices.

Office rents in the five main business districts in Chiyoda, Chuo, Minato, Shinjuku and Shibuya wards rose to 22,452 yen per tsubo in January from 21,998 yen the previous month.

In addition, developers and landlords are expected to add 220,000 ""tsubo"" or 726,000 square meters of new space this year.

Spring Wage Negotiations Begin

The Nikkei online news edition reported today that companies and labor unions have begun wage talks and major steel makers, shipbuilders and heavy machinery workers are asking for an upward review in wages.

Japan Engages EU on Tariffs

Separately, the Nikkei online edition also reported that Japan is proposing the removal of tariffs on passenger cars and consumer electronic goods in a draft report that is expected to constitute a pact for a possible Japan-European Union Free Trade Area.

Gainers and Losers