November 24, 2022
Japan Machine Tool Builders’ Association (JMTBA) announced the firm report for machine tool orders for October 2022. The total amount of orders received was 141 billion yen, the first year-on-year (YoY) decrease in 24 months. Meanwhile, the total orders exceeded 140 billion yen for the second consecutive month, remaining at a quite high level for the month of October, the second-highest level ever recorded after the previous year. It was also the 21st consecutive month in which orders exceeded 100 billion yen.
Domestic demand decreased month-on-month (MoM) for the first time in two months and YoY for the second consecutive month, falling to 44.5 billion yen. It was the first time in five months that domestic demand fell below 50.0 billion yen. The MoM decline in October is likely due to a reactionary drop from the previous month, which saw the positive effects of the fiscal half-year, and also due to holding off on buying ahead of the JIMTOF in November.
By industry, 8 out of 11 industries saw MoM declines. This phenomenon, however, should be temporary, with domestic demand remaining strong.
Foreign demand decreased for the first time in two months from the previous month and for the first time in 24 months from the same month last year to 96.5 billion yen. It was the second consecutive month in which foreign demand exceeded 95.0 billion yen. Orders remained at a strong level, marking the 12th highest single month and the second highest for October on record.
Orders by region also remained at a high level in all three major markets (Asia, Europe, and North America). Orders for Asia, particularly in China, South Korea, and India, have remained at a high level. Orders for Europe are firm, mainly in Germany and other major EU countries, and this month Turkey hit its record high since the classification was set. North America also remains strong; with the U.S. exceeding 27 billion yen for the second month in a row as the IMTS effect persists.
|Amount (million yen)||MoM change (%)||YoY change (%)|
|Electrical & Precision Machinery||5,585||82.6||73.0|
Japan MT orders for
October 2021: strong orders from Europe and the U.S.
November 2021:Both domestic and foreign demand remain strong
December 2021: First drop below 140 billion yen in 4 months, but still remains high
2021 summary: Japan’s MT orders in 2021 raise for the first time in 3 years
January 2022: Large orders in foreign demand; total orders exceed 140 billion yen
February 2022: High levels of both domestic and foreign demand, generally keeping strong
March 2022: Strong March results despite risk factors
April 2022: April MT orders, minimal impact from risk factors
May 2022: May MT orders, 3 new records for foreign demand
June 2022: June MT preliminary report, orders remain favorable
July 2022: July MT orders, second-highest July month on record
August 2022: August MT orders, falling below 140 billion JPY first time in 6 months
September 2022:September MT orders, foreign demand hits a record high for September
September 21, 2022
August 26, 2022
September 13, 2022
September 30, 2022
December 23, 2022
December 14, 2022