Japan's core machinery orders in July down 3.6 pct.

Japan's core private-sector machinery orders in July moved down 3.6 percent from the previous month, marking the second straight monthly decline due to slowing exports and production, government data showed Thursday.

The orders, a highly volatile data series regarded as an indicator of capital spending, totaled 805.6 billion yen (about 6. 70 billion U.S. dollars) in the reporting period. In June, the orders posted a 7.9 percent month-on-month decline.

The government downgraded its basic assessment of core machinery orders for the first time in eight months, saying a pickup is seen stalling. Last month, the government said orders were "picking up."

Orders from the manufacturing sector were down 5.3 percent to 2. 98 billion dollars in July for the second consecutive monthly fall, while those from the nonmanufacturing sector dropped 6.0 percent to 3.73 billion dollars following a 0.6 percent increase in the previous month.

Total orders, including those from the domestic public sector and abroad, rose 2.2 percent to 20.55 billion dollars.

Overseas demand for Japanese machinery, an indicator of future exports, went up 10.2 percent to 9.81 billion dollars. Endi