Orders for mechanical engineering products are indicator of investment activity and the level of confidence in the national economy on the part of medium and large businesses.
The Japanese Institute of Economic and Social Research is engaged in the calculation of indicators. The formula tracks the costs of machine tools, robots and electronics of three hundred national large enterprises. The costs do not include components and maintenance.
Frequency, time and format of publishing Machinery Orders
The data is published at the end of the first decade of each month, exit time is 5: 00 GMT (9: 00 Moscow time). Before the actual values appear, in economic the calendar contains analyst forecasts and figures for the previous period.
Publication format-percentage changes, importance news – low, one point on the three-point scale of significance of the economic news calendar.
The impact of the Machinery Orders indicator on the Forex stock and currency market
Capital investments, the purchase of new machines and production lines are the implementation of a long-term development strategy, the planning of which was preceded by the search for financing. Given the absolute importance of the volume of purchases and capital investments, investors and speculators understand that the indicator is lagging, so its output does not lead to significant fluctuations currencies.
The Corporate Goods Price Index is taken into account as a confirming indicator of economic growth or decline detected by other leading or actual indicators. A positive trend is determined if the order values are published higher or coincide with the forecasts, while a negative trend or data worse than preliminary estimates means a decline. Based on growth data the Japanese currency is strengthening, as is the Nikkei stock index, which is also increasing values. The indicator also has an indirect impact on the cost of raw materials and energy resources consumed by the machine-building industry after an increase or decrease in the level of orders.
International value of the Machinery Orders Index
Japan, along with the USA and Germany, are the leaders of the world mechanical engineering, so investment funds and institutional investors track the level of orders for the production of machinery, machine tools and electronics in these countries. The resulting value and individual indicators of these countries indicate trends in the global economy.
Despite the delay and long-term planning, the indicators are indispensable during the crisis, as the most accurate indicators of the "passed bottom", after the growth of which you can collect portfolios of stocks or gain positions in the currency of developing countries, expecting a weakening dollar.