10.4 percent: Japan's machinery orders got the biggest drop in last 10 years

Taking into account the global economic slowdown led to reduced overseas demand, machinery manufacturers have cut their investment plans, leading to Japan's machinery orders fell 10.4 percent last season, the biggest drop over the past 10 years.

Machinery orders data in Japan has been a leading indicator of investment in equipment, the Japanese Cabinet Office said in Tokyo yesterday, machinery orders drop is the signal reducing investment in the next three to six months.

Reduce of Japanese exporters' profits this year have resulted in the Nikkei 225 index fell 44 percent, and forced some of Japan's largest companies to cut down costs. Toyota Motor Corporation of Japan anticipated last week the fiscal year revenue will be reduced by 70%, and plans to reduce the staff and investment.

"Demand reduction has been very clear, which suppress the will of the investment." BNP Paribas senior economist in Tokyo Maruyama is forecast, "we will see more companies to reduce the cost in greater scope."