July MT orders, second-highest July month on record

August 25, 2022

Japan Machine Tool Builders’ Association (JMTBA) announced firm report of 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. However, orders have exceeded 140 billion yen for five consecutive months, and this is the second-highest single month in July on record, indicating that orders remain at a high level. This month marks the 18th consecutive month in which orders have exceeded 100 billion yen.

Domestic demand exceeded 50 billion yen for the second consecutive month, reaching 51.9 billion yen. Month-on-month (MoM) demand decreased for the first time in two months, while year-on-year (YoY) demand increased for the 17th consecutive month.

Although the effect of subsidies has slowed down from the previous month, and the re-spread of COVID-19 also led to a MoM decrease, demand remained firm mainly in major industries, with the semiconductor-related industry as strong as before, and recovery in the automotive industry.

Foreign demand decreased MoM for the second consecutive month and increased YoY for the 21st consecutive month to 90.4 billion yen. Although the orders fell below 95 billion yen for the first time in five months, it exceeded 90 billion yen for the seventh consecutive month and reached a record high for July.

By region, orders from Asia dropped below 45 billion yen for the first time in five months. Meanwhile, orders from Europe recovered to around 20 billion yen again as the impact of cancellations in the previous month subsided. Orders from North America remained generally at a high level, exceeding 25 billion yen for the 11th consecutive month.

July Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	142,412	92.1	105.5
Domestic total	51,970	88.6	114.5
Industrial Machinery	21,330	86.4	123.2
Motor Vehicles	13,399	110.2	153.4
Electrical & Precision Machinery	6,190	77.1	77.0
Aircraft/Shipbuilding/Transport equipment	959	53.0	105.4
Foreign total	90,442	94.2	100.9
Asia	42,403	82.2	100.6
Europe	19,751	130.8	90.3
North America	25,870	95.0	108.2