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The recovery of domestic demand progresses, and June MT orders exceeds 130 billion yen

July 21, 2021

On July 21, 2021, Japan Machine Tool Builders’ Association (JMTBA) announced the confirmed figures of Japan’s machine tool orders in June.

The total amount of orders received was 132 billion yen, up 96.6% from the same month of the previous year. The orders in June exceeded 130 billion yen for the first time in 27 months since the record of 130.6 billion yen in March 2019. The monthly order amount has exceeded 100 billion yen for 5 consecutive months. Domestic demand increased 91.1% year-on-year to 44.6 billion yen, and foreign demand increased 99.5% year-on-year to 87.4 billion yen.

Domestic demand exceeded 44 billion yen for the first time in 21 months. By industry, out of all 11 industries, 10 industries excluding aviation, shipbuilding, and transportation machinery increased both month-on-month and year-on-year. In addition, domestic demand has a tendency to increase as companies were admitted to get a subsidy from government such as subsidies for business restructuring.

Foreign demand had been increasing for four consecutive months, but turned to decrease. Year-on-year increase for 8 consecutive months.

By region, large orders for electrical machinery from China dropped, and orders in Asia fell below 50 billion yen. On the other hand, in Europe and North America, orders have recovered due to vaccination against the new coronavirus infection.

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