Over 160 billion yen for the first time in 47 months

April 11, 2022

Japan Machine Tool Builders’ Association (JMTBA) announced preliminary machine tool orders for March 2022. The total amount of orders received was 166.4 billion yen, up 30.2% from the same month last year. This was the first month-on-month (MoM) increase in two months, up 19.8%, and the 17th consecutive month of year-on-year (YoY) increase. This is the 14th consecutive month in which the amount has exceeded 100 billion yen.

Domestic demand in March was 60 billion yen. This is the second consecutive month of MoM increase and the 13th month of YoY increase, and the first time in 42 months since September 2018 (64.4 billion yen) that it has exceeded 60 billion yen. In addition to the continued strength of semiconductor-related demand, the increase is believed to have been due to the effect of the end of the financial year in Japan and a rush before price hikes.

Foreign demand increased for the first time in two months MoM to 106.4 billion yen, the first time in 48 months since March 2018 (107.3 billion yen) that it exceeded 100 billion yen. The high level was recorded amid the spread of the new COVID-19 variant and recent geopolitical risks. Details of the breakdown will be announced when the firm report is released.

As a result, the total amount of Japanese orders in FY2021 (April 2021-March 2022) increased for the first time in three years to 1.6667 trillion yen. In particular, foreign demand exceeded 1 trillion yen for the first time in four years, recording 1.016 trillion yen. This was a record high, surpassing 1.924 trillion yen in FY2017.