Japan: Growth momentum does not appear sustained in Q2 - BBH

Research Team at BBH, notes that Japan reported machine orders plummeted 11% in April while the median guesstimate was for a 3% decline after a 5.5% rise in March. 

Key Quotes

“Machine orders are used as a proxy for capex.  Despite Q1 GDP having been revised higher and speculation that it had undermined the need for more stimulus, the momentum does not appear sustained in Q2. 

With the July upper house election around the corner, it would not be surprising to see details of the fiscal stimulus being discussed in greater detail next week.  Expectations for BOJ easing appear to have been pushed from next week into the end of next month.”