Japan's core machinery orders blows away forecasts

TOKYO
Japanese core machinery orders rose an unexpectedly strong 10.5% in May from the previous month, the government said Thursday, a sign that companies might be speeding up their investment plans as the economy improves
The rise was larger than expected by economists surveyed by Dow Jones Newswires and the Nikkei, who estimated on average that core orders increased 1.4% from April
Unadjusted core orders also rose 16.5% from the year-earlier month
Machinery orders are widely regarded as a leading indicator of corporate capital investment Core orders exclude those from electric power companies and those for ships, which are often a source of volatility in the overall data due to their large size
Recent data, including the Bank of Japan's closely watched Tankan survey released earlier this month, have shown businesses planning to spend more on investment in coming months
Getting firms to spend more is a key part of the government's plan to put the world's third-largest economy on the path to long-term growth