Japan’s Machine Orders fell -3.2% through January to bring the annual pace of decline to a staggering -39.5%, the worst on record and the lowest in at least 29 years, on evaporating foreign demand. The current account showed the largest deficit since 1986 in the same period after shipments to key markets shrank by unprecedented margins, with exports to the US down -52.9% and those to Europe and China lower by -47.4% and -45.1%, respectively. On balance, some hope may lay ahead if the recent decline in the Japanese Yen is to be sustained, helping to encourage overseas sales by making Japanese goods cheaper for foreign buyers. The currency has slipped over 10% since January, lifting sentiment in the manufacturing sector.
