November MT orders, record the lowest in 2022

Japan Machine Tool Builders’ Association (JMTBA) announced the firm report for machine tool orders for November 2022. The total amount of orders received was 134.1 billion yen, marking the lowest in 2022. Both month-on-month (MoM) and year-on-year (YoY) orders decreased for the second month in a row. It was the 22nd consecutive month in which orders exceeded 100 billion yen.

Domestic demand increased MoM for the first time in two months and decreased YoY for the third consecutive month to 44.6 billion yen. It was the second consecutive month in which domestic demand fell below 50.0 billion yen, but still exceeded the 45.0 billion yen line. In November, the effect of the JIMTOF 2022 exhibition and subsidies boosted domestic orders, however, due to weak growth in the automotive sector, the MoM increase was limited to single digits.

By industry, 6 of the 11 industries saw MoM increases, while 7 saw YoY decreases. Although domestic demand in Japan seems to be slowing down slightly, the effect of the exhibition is expected to carry over into December and beyond.

Foreign demand decreased for the second consecutive month to 88.5 billion yen, both on the MoM and YoY basis. It was the first time in three months that foreign demand fell below 90 billion yen. As with domestic demand, foreign demand is also showing signs of settling down, but still remains at a high level of around 90 billion yen.

Orders by region for the three major markets (Asia, Europe, and North America) were up MoM only in Europe. In Europe, several spot orders were received, with Turkey and Switzerland recording their highest amounts since the classification was formed. Orders from Europe exceeded 20 billion yen for the first time in six months, recording the highest in 2022. Orders from Asia remained strong, exceeding 40 billion yen for the 14th consecutive month, despite month-on-month declines for China and India. For North America, orders fell below 25 billion yen for the first time in 15 months. The IMTS exhibition effect has slowed down, and orders from Canada and Mexico also fell below 1 billion yen.

November Summary

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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
• October 2022: October MT orders, first YoY drop in two years but at a high level