Leading Japanese manufacturers have seen their production hit hard by the quake and tsunami Analysts said the data showed that the recovery in Japan remains volatile in the wake of power shortages.
Machinery orders are a key indicator of companies' capital spending and expansion plans.
"We have power shortage issues which are going to stay for a long time," said Yuuki Sakurai of Fukoku Capital Management
Mr Sakurai said that even if companies were to buy new machinery, they would not be able to utilise it fully because of power supply problems - so they may use their capital in other areas.
He added that as the summer season reaches its peak, things are likely to get worse.
"If they are trying to save power, we may even grow as a lower-than-expected rate," he said.
"This is not a steady recovery," he added.
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