July MT preliminary report, with orders steady

August 16, 2022

Japan Machine Tool Builders’ Association (JMTBA) announced preliminary machine tool orders for July 2022. The total amount of orders received was 142.4 billion yen, falling below 150 billion yen for the first time in five months, but still exceeding 140 billion yen for the fifth consecutive month and remaining steady. The month-on-month (MoM) orders were down 8.0% for the first decline in two months, while the year-on-year (YoY) orders were up 5.5% for the 21st consecutive month of growth. It was also the 18th consecutive month in which the amount of orders exceeded 100 billion yen.

Domestic demand decreased 11.4% from the previous month to 51.9 billion yen.

This was the first MoM decrease in two months, but exceeded 50 billion yen for the second consecutive month. YoY demand increased for the 17th consecutive month.

Despite the rapid spread of COVID-19 infections in Japan, the subsidies have been supporting the high level of demand.

Foreign demand, on the other hand, fell 5.9% to 90.4 billion yen, the second consecutive MoM decline. Although the figure was below the 100 billion yen level, it remained above 90 billion yen for the seventh consecutive month. The MoM decline in Europe and the U.S. may have been due in part to the summer vacation season, but the level of orders remained high, indicating steady demand.