Japan's core machinery orders rose a seasonally-adjusted 14.8 percent in November from a month earlier last year to 788.9 billion yen (10.25 billion U.S. dollars), marking the first increase in three months, a Cabinet Office report showed on Monday.

The government's figure for November, which excludes volatile shipbuilding and power companies, came in far higher than the median market forecast for a 6.0 percent increase in the recording period and on the back of a 6.9 percent contraction logged in October, the data showed.

The latest figure marks the highest gain since an 18.5 percent increase booked in January 2008, with the rise in October's core machinery orders suggesting that corporate capital spending is showing some signs of an uptick despite Japan's exporters being pressured by a slowdown in global economic growth, ongoing uncertainty and sovereign debt contagion in the eurozone and a persistently strong yen.

The aforementioned, according to analysts, have squeezed the margins of local manufacturers and sent some machinery makers overseas to more economically viable production hubs, but the latest figure reveal a fresh resilience to such downside pressures.

The Cabinet Office said however it expects core machinery orders to contract by 3.8 percent in the October to December period, from the previous quarter, which will mark the first decline in four quarters, following a 1.5 percent increase in the July to September period.

Despite the robust rebound, the Cabinet Office maintained its assessment for the recording period, saying, "Machinery orders are fluctuating, taking one step forward and one step back."

From a year earlier, core private machinery orders jumped 12.5 percent in November, following a 1.5 percent increase in November, the latest government data revealed.

Machinery orders are a key advance indicator for corporate capital spending and the government uses the data to predict the strength of business spending in a six to nine month period ahead and such business investment accounts for roughly 15 percent of Japan's gross domestic product.

Types of machinery included in the monthly government survey comprise engines and turbines, heavy electrical machinery, electronic and communication equipment, industrial machinery, machine tools, railway rolling stock, road vehicles, aircraft, ships, water crafts, as well as sub types in the aforementioned categories.