February 13, 2024
The Japan Machine Tool Builders’ Association (JMTBA) announced the preliminary report of new orders for machine tools for the month of January 2024. The total amount of new orders reached 110.8 billion yen, down 12.8% month-on-month (MoM) and below 120 billion yen for the first time in two months. This was the 13th consecutive month of year-on-year (YoY) decline.
Domestic demand experienced a 20.2% MoM decline, totaling 30.5 billion yen. This was the first MoM decline in two months and the 17th consecutive month of YoY decline, falling below 31.0 billion yen for the first time in 35 months. The seasonal slowdown during the New Year holiday and ongoing weakness in the business environment, including sales negotiations, contributed to the decline.
Meanwhile, foreign demand decreased by 9.5% MoM to 80.3 billion yen. Although this was the first MoM decline in three months, it marked the 13th consecutive month of YoY decline, falling below 85 billion yen for the first time in two months. While not as sharp as domestic demand, there are signs of a slowdown in various regions. However, orders have remained above 80 billion yen for three consecutive months, signaling resilience in the firmness of orders.
Further details, including a breakdown of orders by region, will be added when the final report is released.