Core orders, the leading indicator of Japanese business spending, were down 1.1% in July from the previous month, the data showed. Orders from manufacturers fell 5.3% in July, the largest decline in eight months, due to weak demand for computers from industries including electric machinery, auto and chemicals. Orders from "core" service-sector firms excluding shipping and electric utilities grew 1.3%. The government maintained its weak view on machinery orders, saying they are "stalling", highlighting the bumpy road ahead for Japanese business and its broader economy. In July, Japan's exports fell for the first time in nearly 2-1/2 years, while the industrial output contracted more than expected.

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Persons: Chisato Oshiba, Fumio Kishida, reshuffling, Kantaro Komiya, Chang, Ran Kim Organizations: ", Dai, Research, Manufacturers, U.S . Federal Reserve, Bank of Japan, Thomson Locations: TOKYO, China, Japan