Despite concerns, high levels of orders continue

May 17, 2022

Japan Machine Tool Builders’ Association (JMTBA) announced preliminary machine tool orders for April 2022. The total amount of orders received was 154.9 billion yen, up 25.0% from the same month last year. Orders decreased for the first time in two months, down 6.8% from the previous month, but remained strong in April, the start of the 2022 financial year, and exceeded 150 billion yen for the second consecutive month. It was also the eighth-highest single month of orders ever recorded. This was the 18th consecutive month of year-on-year(YoY) increase, and the 15th consecutive month in which the amount of orders exceeded 100 billion yen.

Domestic demand in April decreased 11.7% from the previous month to 53.2 billion yen. While MoM demand decreased for the first time in three months, YoY demand increased for the 14th month in a row. Semiconductor-related demand and the effects of subsidies are likely to continue to support domestic demand.

Foreign demand decreased 4.0% from the previous month to 101.7 billion yen. As with domestic demand, this was a MoM decrease, but YoY demand increased for the second month in a row. Following last month, orders exceeded 100 billion yen for the second consecutive month, the fifth-highest single month on record. Although there are some concerns such as the lockdown in China and geopolitical risks, the high level of orders remains. Details of the breakdown by country and region will be announced when the final report is released.