December 2023 MT orders total JPY 127 billion; 12th consecutive month of YoY decline

The Japan Machine Tool Builders’ Association (JMTBA) announced the firm value of machine tool orders for December 2023 in Japan. Orders totaled 127 billion yen. The month-on-month (MoM) figure increased for the second consecutive month, while the year-on-year (YoY) figure decreased for the 12th consecutive month. Both domestic and foreign demand increased from the previous month due to seasonal factors and large orders, and exceeded 120 billion yen for the first time in three months. 

Domestic demand was 38.2 billion yen, up MoM for the first time in three months and down for the 16th consecutive month. It was the first time in three months that domestic demand exceeded 35.0 billion yen, led by major industries that showed MoM growth. 

Among the 11 industries, 6 industries recorded MoM growth and 8 industries recorded YoY decline. The four major industries (Industrial Machinery; Automobiles; Electrical & Precision Machinery; and Aircraft/Shipbuilding/Transport equipment) each had a large volume of orders and all posted MoM increases. Orders for Aircraft/Shipbuilding/Transport equipment exceeded 2.5 billion yen for the first time in 21 months, while orders for Motor Vehicles recorded the second-highest value in 2023. However, this does not mean that the order environment has improved and the adjustment phase remains. 

Foreign demand was 88.8 billion yen, up MoM for the second consecutive month and down YoY for the twelfth consecutive month. Orders from Asia and North America increased from the previous month and led the foreign total, which exceeded 85.0 billion yen for the first time in three months. 

Orders by region were as follows: In Asia, orders from China exceeded 24 billion yen for the first time in 8 months due to large orders, and orders from India exceeded 6 billion yen for the first time in 3 months due to large orders for automobiles. Orders from Asia as a whole exceeded 35.0 billion yen for the first time in seven months. Orders from Europe remained at about the same level as the previous month, but dropped below 20.0 billion yen for the first time in two months. Orders from Germany decreased for the first time in 16 months, falling below 4.0 billion yen, while orders from France and Turkey increased. Orders from North America increased MoM in all countries in the region and remained steady, exceeding 25.0 billion yen for the fourth consecutive month. 

December Summary

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Japan MT orders for

• Dec. 2022: December MT orders, driven by foreign demand despite a decline in domestic demand
• Jan. 2023: January MT orders, showing declines, domestic up, foreign down
• Feb. 2023: MT orders total 124 bn JPY in Feb 2023: Moderate trends in both domestic and foreign demand
• Mar. 2023: MT orders total 141 bn JPY in Mar 2023: Over 140 billion yen for the first time in 3 months
• Apr. 2023: MT orders total 132 bn JPY in Apr 2023: Domestic demand softens, foreign demand remains strong
• May 2023: MT orders total 119 bn JPY in May 2023: Fall below 120 bn JPY for the first time in 27 months
• Jun. 2023: MT orders total 122 bn JPY in June 2023: First increase in 3 months
• Jul. 2023: MT orders total 114 bn JPY in July 2023: Domestic demand flattens, foreign demand sluggish
• Aug. 2023: MT orders total 114.7 bn JPY in August 2023: Slight MoM uptick, persistent YoY decline
• Sept. 2023: MT orders total 133.9 billion JPY in September 2023: Over 130 billion for the first time in 5 months
• Oct. 2023: October 2023 MT orders total JPY 112.0 billion; lowest order value in 2023
• Nov. 2023: November 2023 MT orders total JPY 115.8 billion; Domestic demand down, foreign demand solid