October MT preliminary report, momentum softens, but generally firm

November 15, 2022

Japan Machine Tool Builders’ Association (JMTBA) announced preliminary machine tool orders for October 2022. The total amount of orders received was 141.1 billion yen. The month-on-month (MoM) total was down for the first time in two months, the year-on-year (YoY) total was down for the first time in 24 months, and it fell below 150.1 billion yen for the first time in two months. While the momentum has slightly softened compared to the pre-summer period, overall orders were firm for October, the second-largest on record after 2021 (149.2 billion yen).

Domestic demand decreased 15.0% from the previous month to 44.5 billion yen. This was the first MoM decline in two months and the second consecutive YoY decline, resulting in domestic demand falling below 50 billion yen for the first time in five months. This result may have been influenced by the holding back of orders ahead of the 31st Japan International Machine Tool Fair (JIMTOF2022).

Foreign demand fell 1.9% from the previous month to 96.5 billion yen. Although the MoM figure declined for the first time in two months and the YoY figure declined for the first time in 24 months, it exceeded 90.0 billion yen for the second consecutive month. Further details on orders received in October, including the order value by country/region, will be announced on November 24, when the final report is released.