November 14, 2023
The Japan Machine Tool Builders’ Association (JMTBA) announced the preliminary report of machine tool orders for October 2023. Orders totaled 112.0 billion yen, the first month-on-month (MoM) decline in three months and the tenth consecutive month of year-on-year (YoY) decline. The amount was the lowest this year, falling below 120 billion yen for the first time in two months, partly due to a reactionary drop from the previous month, which had been strong due to the effect of the end of the first half of the fiscal year and several large orders. This is the 33rd consecutive month that orders have exceeded 100 billion yen.
Domestic demand decreased 25.3% MoM to 33.6 billion yen. This was the first MoM decline in two months and the 14th consecutive month of YoY decline, falling below 40 billion yen for the first time in two months. It was also the first time in 29 months that the amount fell below 35.0 billion yen, partly due to a reactionary decline from the previous month, which was the end of the first half of the fiscal year. The performance next month and beyond should be watched closely as a gradual moderating trend is evident.
Foreign demand fell 11.8% MoM to 78.3 billion yen. This was the first MoM decline in three months and the tenth consecutive MoM decline, falling below 80 billion yen for the first time in two months. Details by region are to be announced when the final report is released, but the level of orders received was almost the same as two to three months ago. Several large orders boosted foreign demand in the previous month, but no major changes are seen in the overall market.