December 2023 – Preliminary MT orders report, Second consecutive MoM growth with year-end boost

January 16, 2024

The Japan Machine Tool Builders’ Association (JMTBA) announced the preliminary report of machine tool orders for December 2023. Orders totaled 126.5 billion yen, marking the second consecutive month of month-on-month (MoM) growth. Although the year-on-year (YoY) value declined for the 12th consecutive month, it exceeded 120 billion yen for the first time in three months. This was the 35th consecutive month that orders exceeded 100 billion yen.

Domestic demand increased 15.7% MoM to 37.8 billion yen. This was the first MoM increase in three months and the 16th consecutive month of YoY decrease, and the first time in three months that domestic demand exceeded 35 billion yen. As seasonal movements in domestic demand are unlikely to be seen at the end of the year, it is believed that a large volume of orders were received.

Foreign demand increased 6.7% MoM to 88.7 billion yen. This was the second consecutive month of MoM increase and the 12th consecutive month of YoY decrease, and the first time in three months that the figure exceeded 85 billion yen. As with domestic demand, foreign demand is believed to have benefited from large orders and year-end effects in the Americas and Europe. Details on orders by region, as well as orders for the December figure and the year-to-date total for 2023, will follow when the final report is released.