Japan MT orders from Asia, Europe and North America recover well

On June 22, 2021, Japan Machine Tool Builders’ Association (JMTBA) announced the confirmed figures of Japan’s machine tool orders volume in May. The total volume of orders increased by 141.9% from the same month of the previous year to 123.9 billion yen, increasing for 7 consecutive months from the same month of the previous year. The month-on-month slightly decreased by 0.03%.

Domestic demand was 33.2 billion yen, up 82.6% from the same month of the previous year. Domestic demand fell below 35 billion yen for the first time in three months. Compared to May 2020, the month when COVID-19 was spreading and the orders were most depressed, all 11 industries increased year-on-year this time. JMTBA pointed out that “although inquiries are on a recovery trend, the recovery is somewhat stagnant due to the effects of the decrease in business days due to Japanese long holidays, the extension of the state of emergency, and the waiting for subsidies.”

On the other hand, foreign demand was 90.7 billion yen, up 174.5% from the same month of the previous year. Foreign demand exceeded 90 billion yen for the first time in 35 months. By region, orders from Asia fell for the first time in four months from the previous month, but due to the strong influence of China, orders from Asia exceeded 50 billion yen for the third straight month. Orders from Europe exceeded 17 billion yen for the first time in 26 months. Germany and Italy are recovering to the same level of orders as they recorded about two years ago. Orders from all European countries and regions more than doubled year-on-year. North America is also doing well, and in the United States, general machinery is especially recovering.