Situation

On an annual basis - Orders growth rate grew to 11.06% p.a in January’07 as compared to a contracted (-2.53% p.a) in December’06.

On a monthly basis - Orders grew by 10.59% in January’07 as compared to a contracted ( -14.96%) in December’06.

Note

Index of Industrial Production ( IIP)  is expected to drop in February’07 ( reflecting drop in Orders in December’06)and increase in March’07 ( reflecting the current increase in Orders in January’07)

Conclusion (click / double click on picture to get  clearer visual)Japan - New Orders -  Jan 2007

Orders can be expected to range between a 0% -10% p.a growth till mid’07. ( range looks ” rather large” but have a look at the visual - and you will get the picture ) 

Post mid ‘07 Orders can be expeced to contract to a negative area towards mid’08