November MT preliminary report, both domestic and foreign demand leveling off

December 13, 2022

Japan Machine Tool Builders’ Association (JMTBA) announced preliminary machine tool orders for November 2022. The total amount of orders received was 134.1 billion yen. Both the month-on-month (MoM) and year-on-year (YoY) totals declined for the second consecutive month. It was also the first time since March that the total amount of orders fells below 140 billion yen, which marked the lowest figure for this year. Both domestic and foreign demand seem to hit a plateau.

Domestic demand increased 2.6% from the previous month to 45.7 billion yen. This was the first MoM increase for domestic demand in two months and the third consecutive month of YoY decline, falling below 50.0 billion yen for the second consecutive month. Although the 31st Japan International Machine Tool Fair (JIMTOF2022) and the positive effect of subsidies were expected, there was no significant increase in orders.

Foreign demand fell 8.4% from the previous month to 88.3 billion yen. Both the MoM and YoY for foreign demand declined for the second consecutive month, falling below 90 billion yen for the first time in three months. Further details on November orders, including the order value by country/region, will be announced on December 21 when the final report is released.