TOKYO - JAPAN'S core machinery orders, a key gauge of corporate capital spending, plunged by a much larger-than-expected 16.2 per cent in November from the previous month, official data showed on Thursday.

The drop in core private-sector machinery orders, which exclude particularly volatile demand from power companies and for ships, came after a 4.4 per cent fall in October.

The market's average forecast was for a decline of around 7.5 per cent.

Core machinery orders placed by manufacturers dived 33.2 per cent in November after a 2.2 per cent fall in October, hit by steep falls in demand from the chemicals, steel and automobile industries.

Orders by the non-manufacturing sector rose by a marginal 0.5 per cent after a decline of 2.3 per cent in the previous month.

Japan's Prime Minister Taro Aso is struggling to cope with deepening economic gloom amid dwindling public support.

The ruling coalition forced an extra budget to fight recession through the powerful lower house of parliament this week, despite objections, including from inside Mr Aso's party.

Machinery orders from the public sector rose 10.9 per cent in November, reversing a 0.2 per cent fall in October. -- AFP