May 16, 2023
The Japan Machine Tool Builders’ Association (JMTBA) announced the preliminary orders for machine tools for April 2023. The total amount of orders received was 132.6 billion yen. Although the month-on-month (MoM) total orders decreased for the first time in two months and the year-on-year (YoY) total orders decreased for the fourth consecutive month, the total orders exceeded 130.0 billion yen for the second consecutive month. This was the 27th consecutive month that orders exceeded 100 billion yen.
Domestic demand decreased 15.1% MoM to 41.9 billion yen. This was the first MoM decline in two months and the eighth consecutive month of YoY decline. Although there was a rebound from the previous month, which benefited from the end of the fiscal year, domestic demand exceeded 40.0 billion yen for the second consecutive month.
Foreign demand decreased by 1.1% from the previous month to 90.7 billion yen. This was the first MoM decline in two months and the fourth consecutive month of YoY decline, but orders remained at a high level, exceeding 90 billion yen for the second consecutive month.
Both domestic and foreign orders remained strong in April, the first month of the fiscal year. Despite many uncertainties in the market, such as rising interest rates and the Ukraine issue, demand for automation is expected to be remain firm due to labor shortages and productivity gains. Among these, the high level of foreign demand is noteworthy. Details on whether there is special demand or not will be announced when the final report is released.