Large orders in foreign demand; total orders exceed 140 billion yen

Japan Machine Tool Builders’ Association (JMTBA) announced the confirmed figures of Japan’s machine tool orders in January 2022. The total amount of orders received was 142.9 billion yen, up 61.3% from the same month last year. The month-on-month (MoM) increase was 2.7%, and this is the first time in two months that the total orders exceeded 140 billion yen.

Domestic demand fell 13.7% MoM to 44.1 billion yen, falling below 50 billion yen for the first time in five months. Although 10 out of 11 industries saw MoM declines, the impact of the Omicron variant was minimal, and the decline is considered to be seasonal, as the semiconductor-related sector holding firm. MoM demand decreased for the first time in two months, while year-on-year (YoY) demand increased for the 11th consecutive month.

Foreign demand increased 58.7% YoY and 12.2% MoM to 98.7 billion yen, exceeding 95 billion yen for the first time in two months. By region, Asia exceeded 45 billion yen for the first time in eight months. Orders for semiconductor-related products in Taiwan and information and communication-related products including smartphones in China contributed to the growth. In Europe, orders exceeded 20.0 billion yen for the first time in two months, with steady growth mainly in the EU. Orders in North America also kept being strong, with orders exceeding 29 billion yen for the first time in two months, while aviation, shipbuilding and transportation machinery recorded record highs this month due to large orders.

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