Both domestic and foreign demand remain strong

December 27, 2021

Japan Machine Tool Builders’ Association (JMTBA) announced confirmed figures of Japan’s machine tool orders in November 2021. The total amount of orders received was 145.4 billion yen, up 64.0% from the same month last year. Although orders decreased by 2.6% from the previous month, total orders exceeded 140 billion yen for the third consecutive month.

Domestic demand increased 84.9% year-on-year (YoY) to 50 billion yen, exceeding 50 billion yen for the third consecutive month. By industry, all 11 industries increased YoY. In particular, general machinery, electricity and precision machinery are recovering.

Foreign demand increased 54.8% YoY and decreased 3.6% month-on-month (MoM) to 95.4 billion yen in November. Orders from Europe and North America decreased, but orders from East Asia and other regions increased, and the high level of orders continues. By region, orders from Europe decreased by about 20% from the previous month, but will remain at a high level of 20 billion yen for the third consecutive month. Especially, orders from Italy reached a record high for the second consecutive month, exceeding 5 billion yen. North America also continues to maintain a high level. In Asia, there was a reactionary decline from the previous month’s large orders. On the other hand, orders for electrical machinery in South Korea, Taiwan, and China increased month-on-month for the third consecutive month.