Japanese Cutting-Edge
Solutions for Metalworking
Japanese Cutting-Edge
Solutions for Metalworking
Statistic
June 22, 2022
Japan Machine Tool Builders’ Association (JMTBA) announced the firm machine tool orders for May 2022. The total amount of orders received was 153.3 billion yen, the 11th highest single month on record. This was the first time that orders exceeded 150 billion yen in May. Both domestic and foreign demand stayed strong, and the impact of various risk factors in May remained limited. This month marked the 16th consecutive month in which orders exceeded 100 billion yen.
Domestic demand marked the second consecutive month-on-month (MoM) decrease and the 15th consecutive year-on-year (YoY) increase, dropping below 50.0 billion yen for the first time in three months. Despite the MoM decrease due to fewer business days because of a long national holiday in early May, the market remained firm, mainly in the semiconductor-related sector. In terms of major industries, six of the eleven industry categories saw MoM increases, including Electrical/Precision machinery and Aircraft/Shipbuilding/Transport equipment, while industrial machinery and motor vehicles decreased from the previous month. Ten industries showed YoY increases.
Foreign demand increased MoM for the first time in two months and for the 19th consecutive month of YoY growth, exceeding 100 billion yen for the third consecutive month. It was the first time that demand exceeded 100 billion yen for three consecutive months. As a single month, this was the fourth-highest level on record, and the first time for May to exceed 100 billion yen. By region, orders in all three major regions remained at high levels. Orders in Asia declined YoY from the record-high level of the previous year, but exceeded 45 billion yen for the third consecutive month. This was the result of favorable conditions in China and a large increase in orders from South Korea. Europe exceeded 20 billion yen for the second consecutive month, and remained firm, mainly in the EU and other Western European countries. In North America, orders exceeded 30 billion yen for the third consecutive month, breaking the record set in March of this year, driven in part by large orders for automobiles.
Japanese machine tool orders showed strong results as of May as well. On the other hand, in addition to existing risk factors, new risk factors such as the depreciation of yen, inflation, and the trend of rising interest rates in Europe and the US are also appearing. The future trends should continue to be closely monitored.
| Amount (million yen) | MoM change (%) | YoY change (%) | |
| Total Orders | 153,334 | 98.9 | 123.7 |
| Domestic total | 49,481 | 93.0 | 148.9 |
| Industrial Machinery | 19,948 | 88.7 | 150.1 |
| Motor Vehicles | 11,396 | 87.0 | 149.7 |
| Electrical & Precision Machinery | 6,978 | 120.4 | 149.1 |
| Aircraft/Shipbuilding/Transport equipment | 1,603 | 146.9 | 180.3 |
| Foreign total | 103,853 | 102.0 | 114.5 |
| Asia | 48,335 | 100.8 | 95.8 |
| Europe | 20,510 | 99.1 | 120.2 |
| North America | 33,030 | 106.8 | 149.9 |
Japan MT orders for
October 2021: strong orders from Europe and the U.S.
November 2021:Both domestic and foreign demand remain strong
December 2021: First drop below 140 billion yen in 4 months, but still remains high
2021 summary: Japan’s MT orders in 2021 raise for the first time in 3 years
January 2022: Large orders in foreign demand; total orders exceed 140 billion yen
February 2022: High levels of both domestic and foreign demand, generally keeping strong
March 2022: Strong March results despite risk factors
April 2o22: April MT orders, minimal impact from risk factors
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