Hopes for a Japanese economic recovery have been abandoned as new data shows Japan's core machinery orders fell by 5.4% in April.

The fall marked the fifth consecutive month of year-on-year declines in Japan's core machinery orders, which is considered as a key indicator of business activity and economic health.

The latest figures highlight the collapse in Japan's economy and suggest that any economic recovery will be slow and fragile.

Meanwhile, Japanese wholesale prices saw a record fall of 5.4 percent in May from a year earlier, not seen since March 1987.

The figures raised fears that Japan will fall back into deflation, as consumers tend to postpone spending in hopes of further price drops.

Japanese exports have been badly hit by weaker global demand in the last six months.

MVZ/SC/AA