March MT preliminary report, fiscal year-end effect drives orders

The Japan Machine Tool Builders’ Association (JMTBA) announced preliminary machine tool orders for March 2023. The total amount of orders received was 141 billion yen, the first month-on-month (MoM) increase in three months and the third consecutive year-on-year (YoY) decrease, exceeding 140 billion yen for the first time in three months. This was the 26th consecutive month that orders exceeded 100 billion yen.

Domestic demand increased for the first time in two months to 49.3 billion yen, up 26.8% from the previous month. This was the first MoM increase in two months and the seventh consecutive month of YoY decline. The effect of the fiscal year-end pushed domestic demand above 45.0 billion yen for the first time in four months.

Foreign demand increased by 7.6% MoM to 91.6 billion yen. This was the first MoM increase in three months and the third consecutive month of YoY decline. New orders exceeded 90 billion yen for the first time in three months.

Both domestic and foreign demand increased due to the effect of the end of the fiscal year, but the market remained calm, with orders declining by more than 10% YoY.

In terms of the total amount of orders received in Japan in fiscal 2022, total orders increased for the second consecutive year and exceeded 1.7 trillion yen for the first time in five years, making it the second-largest amount ever. Domestic demand increased for the second consecutive year, exceeding 550 billion yen for the second consecutive year. Foreign demand increased for the third consecutive year and exceeded 1.1 trillion yen for the second consecutive year, setting a record.

Details will be announced when the final report is released.