March 22, 2023
The Japan Machine Tool Builders’ Association (JMTBA) announced the firm report of machine tool orders for February 2023. The total amount of orders received was 124 billion yen. This was the second consecutive month in which orders declined on both a month-on-month (MoM) and year-on-year (YoY) basis, and the second consecutive month in which the total amount of orders received was less than 130 billion yen. Both domestic and foreign demand showed moderate trends, although orders remained firm. This was the 25th consecutive month in which orders exceeded 100 billion yen and the 24th consecutive month in which orders exceeded 120 billion yen.
Domestic demand fell for the first time in two months MoM and for the sixth consecutive month YoY to 38.9 billion yen. Since May 2021 (33.2 billion yen), this was the first time in 21 months that domestic demand fell below 40.0 billion yen. While the automotive-related sector remained at a low level, other major industries also experienced declines in February. As a result, the overall market weakened slightly.
By industry, 6 out of 11 industries reported declines MoM, while 10 industries reported declines YoY. Among the four major industries, “Automobiles” remained almost unchanged from the previous month, falling below 8.0 billion yen for the second consecutive month. “Electrical & Precision Machinery” fell below 5.5 billion yen for the first time in 18 months.
Foreign demand decreased both MoM and YoY for the second consecutive month to 85.1 billion yen, falling below the 90 billion yen mark for the second consecutive month.
Orders received by region were as follows: In Asia, orders from China returned to normal after the Lunar New Year, but orders from India for automobiles were absent. As a result, total orders from Asia did not reach 40.0 billion yen. In Europe, orders fell below 20 billion yen for the first time in two months, with orders from Italy and Switzerland down from the previous month, but Germany exceeded 5 billion yen for the first time in 14 months, and Turkey also maintained a solid level. In North America, orders were somewhat subdued, falling below 24.0 billion yen for the first time in 19 months. Orders from the U.S. fell below 22 billion yen for the first time in 20 months.
|Amount (million yen)||MoM change (%)||YoY change (%)|
|Electrical & Precision Machinery||5,319||67.6||49.5|
Japan MT orders for
February 15, 2023