Improving sentiment yet to be matched in investment

The slump in machinery orders in January illustrates the divergence between the improvement in sentiment in financial markets and what is actually happening on the ground. Of course, it is too soon to expect “Abenomics” to transform the incoming economic data, especially those that are two months old. But the renewed weakness in a relatively forward-looking indicator such as machinery orders has to be a real concern, and it doesn't say much for the strength of the global recovery either.