Japan MT orders in May is 123.3 billion yen with strong foreign demand

June 9, 2021

On June 9, 2021, Japan Machine Tool Builders’ Association (JMTBA) announced preliminary figures of Japanese machine tool orders in May. The total amount of orders received was 123.3 billion yen, up 140.7% from the same month of the previous year. Domestic demand increased 83.2% year-on-year to 33.3 billion yen, and foreign demand increased 172.3% year-on-year to 90 billion yen.

Domestic demand decreased by 7.6% month-on-month, but foreign demand increased by 2.4% month-on-month, increasing for 4 consecutive months. The total amount of orders has exceeded 120 billion yen for the third consecutive month.

The reason for the sluggish domestic demand is thought to be the decrease in the number of business days due to long holidays in Japan, the extension of the state of emergency.

On the other hand, foreign demand increased for 4 consecutive months from the previous month and increased for 7 consecutive months from the same month of the previous year, exceeding 90 billion yen for the first time in 35 months. Reasons for the good performance include the progress of vaccination and the activation of economic activity, the continued strong performance of China, and the recovery trend of Europe and the United States.

JMTBA plans to announce the confirmed figure of Japanese machine tool June orders on June 22nd.