July 2023 MT preliminary report: MoM and YoY drop in both domestic and foreign demand

August 10, 2023

The Japan Machine Tool Builders’ Association (JMTBA) announced the preliminary report of machine tool orders for July 2023. The total amount of orders received was 114.2 billion yen. This was the first month-on-month (MoM) decline in the total amount of orders received in two months, and it was the first time in two months that it fell below 120.0 billion yen. The year-on-year (YoY) figure marked the seventh consecutive month of YoY decline. This is the 30th consecutive month that orders have exceeded 100 billion yen.

Domestic demand decreased by 3.9% MoM to 39.2 billion yen, the first MoM decline in two months and the eleventh consecutive month of YoY decline. Although there was some positive impact from subsidies, domestic demand remained in an adjustment phase in July, falling below 40 billion yen for the first time in two months.

Foreign demand decreased by 7.6% MoM to 74.9 billion yen. This was the fourth consecutive MoM decline and the seventh consecutive month of YoY decline, and the first time in 29 months since February 2021 (75.1 billion yen) that demand fell below 80.0 billion yen.

More details are due to be released when the final report is released on August 23. The situation in China, where a decline was seen in June, and in Europe and the U.S., where the outlook remains uncertain, are being closely watched.