February 2024 – Preliminary MT orders report, shows positive momentum with 2.9% MoM increase

March 12, 2024

The Japan Machine Tool Builders’ Association (JMTBA) has released the preliminary report on new orders for machine tools for February 2024. The total amount of new orders was 114.1 billion yen, up 2.9% month-on-month (MoM) – a positive shift after two months, but remaining below 120 billion yen for two consecutive months. This marks the 14th consecutive month of year-on-year (YoY) decline.

Domestic demand increased by 6.2% MoM to 32.4 billion yen. This marked the first MoM increase in two months and continued the trend of YoY decline for the 18th consecutive month, falling below 35.0 billion yen for the second consecutive month. Amid a lack of momentum in the domestic investment environment, a wait-and-see attitude has persisted, partly reflecting waiting for subsidies and other factors.

Foreign demand increased by 1.6% MoM to 81.6 billion yen. This was the first MoM increase in two months and continued the streak of YoY decline for the 14th consecutive month, falling below 85 billion yen for the second consecutive month. While the situation has remained relatively unchanged, with a slight increase from the previous month, new orders remain solid, exceeding 80 billion yen for the fourth consecutive month.

Further details, including a breakdown of orders by region, will be added when the final report is released.