September MT preliminary report, strong, second-highest for September

Japan Machine Tool Builders’ Association (JMTBA) announced preliminary machine tool orders for September 2022. The total amount of orders received was 150.8 billion yen. Orders exceeded150 billion yen mark for the first time in three months due to the end of half-year period of the fiscal year and the effect of exhibitions held overseas. As for September, this was the second-highest level on record after 2018 (153.5 billion yen). This was the first month-on-month (MoM) increase in three months and the 23rd consecutive month of year-on-year (YoY) increase. It was also the 20th consecutive month in which the amount of orders exceeded 100 billion yen.

Domestic demand increased 1.2% from the previous month to 52.4 billion yen. This was the first increase in three months due to the end of the fiscal half-year, and the fourth consecutive month in which domestic demand exceeded 50 billion yen. On the other hand, it was down 9.0% from the same month last year when the effect of subsidies was added, marking the first YoY decline in 19 months.

Foreign demand increased 13.1% from the previous month to 98.4 billion yen, marking the fourth consecutive month of MoM growth. It was the first time in two months that demand exceeded 90 billion yen, a record high for September, and the 10th highest single month on record. YoY growth was also maintained for the 23rd consecutive month. Strong market conditions, combined with the positive effects of the exhibitions, are likely to have contributed to the large increase in demand. Details by country/region will be announced when the final report is released.