May MT preliminary report, record high level on foreign demand

Japan Machine Tool Builders’ Association (JMTBA) announced preliminary machine tool orders for May 2022. The total amount of orders received was 153.3 billion yen, exceeding 150 billion yen for the third consecutive month, remaining strong. This was the 11th highest single month of orders on record. While orders decreased for the second consecutive month, down 1.1% from the previous month, they increased year-on-year(YoY) for the 19th consecutive month and exceeded 100 billion yen for the 16th consecutive month.

Domestic demand in May decreased 6.9% month-on-month(MoM) to 49.4 billion yen. This was the second MoM decrease in a row and the 15th consecutive month of YoY increase, and the first time in three months that domestic demand has fallen below 50 billion yen.

Although the number of working days decreased from the previous month due to a large national holiday in Japan in early May, demand remained strong, especially for semiconductor-related products.

Foreign demand was up 2.0% from the previous month to 103.8 billion yen. This was the first MoM increase in two months and the 19th consecutive month of YoY growth. This month marked the third consecutive month in which foreign demand exceeded 100 billion yen, and the 4th highest single month on record. It is the first time that foreign demand has exceeded 100 billion yen for three consecutive months, showing it remains favorable.

The details of the breakdown by country and region will be announced when the firm report is released, but the level of orders should indicate that the three major regions (Asia, North America and Europe) are keeping the high level they have been at so far.