Tokyo  - Japan's key machinery orders hit their lowest level in 22 years in April as companies have cut their capital investments amid the global economic slowdown, the Cabinet Office said Wednesday.

Core orders, which exclude those for ships and power equipment, dropped to 688.8 billion yen (7.03 billion dollars), down 5.4 per cent in April from the previous month.

The figures were down 32.8 per cent in unadjusted terms compared with a year before.

Orders from manufacturers declined 9.4 per cent, and those from non-manufacturers dropped 3.5 per cent.

Core machinery orders are regarded as a leading indicator of corporate capital spending about six months ahead. (dpa)