January 26, 2023
The Japan Machine Tool Builders’ Association (JMTBA) announced the firm report for machine tool orders for December 2022. The total amount of orders received was 140.5 billion yen. This was the first month-on-month (MoM) and year-on-year (YoY) increase in three months, and the first time in two months that the figure exceeded 140 billion yen. While domestic demand showed less strength, foreign demand, boosted by large orders, was at a fairly high level, driving total orders. This was the 23rd consecutive month that orders exceeded 100 billion yen.
Domestic demand declined for the first time in two months and for the fourth consecutive month to 42.2 billion yen, and remained below 50 billion yen for the third consecutive month.
By industry, 6 out of 11 industries showed a decline on a MoM basis, and 9 industries showed a decline on a YoY basis. Among the four major industries, Motor Vehicles and Electrical & Precision Machinery increased from the previous month, while Industrial Machinery fell below 16 billion yen for the first time in 19 months, indicating a decline despite the expected positive effect of the JIMTOF 2022 exhibition. According to JMTBA, a slowdown in semiconductor-related demand and uncertainty about the future may have had an impact.
Foreign demand increased for the first time in three months to 98.2 billion yen, both MoM and YoY, and exceeded 95.0 billion yen for the first time in two months. This was the 11th largest single month on record and the second-largest December on record, following 102.5 billion yen in 2017.
By region, orders from Asia exceeded 45 billion yen for the first time in three months, as China continued to receive high levels of orders and India received a large order for automobiles. Orders from Europe were below 20 billion yen for the first time in two months, but still exceeded 19 billion yen for the third consecutive month, showing steady performance, mainly in the EU. Orders from North America exceeded 29 billion yen for the first time in two months, with an increase in orders for automobiles and aircraft.
The total amount of orders received for the calendar year 2022 increased for the second consecutive year to 1,759.6 billion yen, exceeding 1.7 trillion yen for the first time in four years and the second-highest order amount on record after 1,815.8 billion yen in 2018.
Domestic demand showed a slight calming down in the latter half of the year, but increased for the second consecutive year due to pent-up demand from the pandemic and semiconductor-related demand, reaching 603.2 billion yen. it was the first time in four years that domestic demand exceeded 600 billion yen.
Foreign demand remained high from the beginning of the year due to worldwide demand related to semiconductors and EV-related demand in China. Orders increased for the second consecutive year, reaching a record high of 1,156.3 billion yen as the total of foreign demand.
|Amount (million yen)||MoM change (%)||YoY change (%)|
|Electrical & Precision Machinery||6,344||108.6||85.8|
Japan MT orders for
December 22, 2022
January 17, 2023
December 23, 2022