MT orders total 124 billion JPY in Feb 2023: Moderate trends in both domestic and foreign demand

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.

February Summary

RELATED CONTENT:

Japan MT orders for

• 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
• November 2022: November MT orders, record the lowest in 2022
• December 2022: December MT orders, driven by foreign demand despite a decline in domestic demand
• January 2023: January MT orders, showing declines, domestic up, foreign down