TOKYO, Feb 7 (Reuters) - Japan's core machinery orders rose

2.8 percent in December, up for a third straight month,

government data showed on Thursday, in a sign a global economic

recovery and a weaker yen will encourage companies to increase

their capital spending.

The rise in core orders, which exclude those of ships and

power utilities, compared with a median market forecast for a

0.7 percent month-on-month decline. It followed a 3.9 percent

rise in November and a 2.6 percent increase in October, the

Cabinet Office data showed.

Compared with a year earlier, core orders, a highly volatile

data series regarded as an indicator of capital spending in the

coming six to nine months, fell 3.4 percent in December.

Manufacturers surveyed by the Cabinet Office forecast that

core orders will rise 0.8 percent in January-March after rising

2.0 percent in October-December.

The government raised its assessment of machinery orders,

saying they were showing a moderate pickup. Previously, it had

said that they were weakening as a trend.

To view full table, please go to the website of the Cabinet

Office at:

http://www.esri.cao.go.jp/en/stat/juchu/1212juchu-e.html

(Reporting by Kaori Kaneko; Editing by Chris Gallagher)

((kaori.kaneko@thomsonreuters.com)(Reuters

Messaging:)(kaori.kaneko.thomsonreuters.com@reuters.net)(+81-3-6

441-1983))

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