CRI听力:Downside Effects Sales Tax on Japanese Economy

A pedestrian is reflected in an electronic board showing the various stock prices outside a brokerage in Tokyo August 13, 2014. [Photo: CFP]

New stats show Japan's core machinery orders have dropped at the quickest rate in more than five years during the second quarter.

Machinery orders are a key advance indicator for corporate spending.

Japan's Cabinet Office is attributing the 10-percent drop to businesses remaining wary of spending in the wake of the sales tax hike in April.

The machinery orders report comes on the heels of new stats this week showing Japan's economy contracted 6.8-percent through the second quarter.

For more on the status of Japan's economy, the Beijing Hour's Paul James spoke earlier with Alun John, deputy editor of Shanghai Business Review.