July 11, 2022
Japan Machine Tool Builders’ Association (JMTBA) announced preliminary machine tool orders for June 2022. The total amount of orders received was 154.6 billion yen, exceeding 150 billion yen for the 4th consecutive month. This was the 9th highest single month of orders ever recorded. The month-on-month (MoM) increase was 0.9%, increasing for the first time in three months, and the year-on-year (YoY) increase was 17.1%, marking the 20th consecutive month of YoY increase. It was also the 17th consecutive month in which the amount exceeded 100 billion yen.
Domestic demand increased 18.5% from the previous month to 58.6 billion yen. This was the first time in three months that domestic demand exceeded 55 billion yen. This was the first MoM increase in three months and the 16th consecutive month of YoY growth. The adoption of subsidies may have had the effect of boosting demand, but it remains strong, especially in the semiconductor-related sector.
On the other hand, foreign demand was down 7.5% from the previous month to 96 billion yen, the first MoM decrease in two months and the first time in four months that it has fallen below 100 billion yen. However, this still was the 13th highest single month on record, and the order level remains high. Despite the presence of various risk factors such as geopolitical risks and the impact of the U.S. rising interest rates, it can be concluded that the strong performance is sustaining, considering the large orders received in the previous month.