UPDATE 1-Japan machinery orders points to spending slowdown

(Adds economist's quote, details on capex)

* March core orders +5.5 pct vs forecast +0.5 pct

* Core orders seen -3.5 pct in April-June qtr

* Capital spending seen crucial for sustained growth

* March orders +3.2 pct yr/yr vs forecast +0.8 pct

By Stanley White

TOKYO, May 19 (Reuters) - Japan's core machinery orders rose

more than expected in March but companies expect orders to

decline in the current quarter as firms become increasingly

cautious due to a rising yen and

Read more