Japan preliminary machine tool orders surge in June 2024: Orders up 7.5% to JPY 133.8 billion

July 9, 2024

The Japan Machine Tool Builders’ Association (JMTBA) has released preliminary figures for new orders for machine tools in June 2024. The total amount of new orders received was 133.8 billion yen, marking a 7.5% increase from the previous month. This marks the second consecutive month of growth and the first time in three months that the total has exceeded 130 billion yen. In addition, the year-on-year (YoY) figures showed growth for the second consecutive month.

Domestic demand shows signs of recovery

Domestic orders increased by 17.2% from the previous month to 40.8 billion yen. This increase, the first in three months, brought the total above 40 billion yen for the first time in three months. Despite recording the 22nd consecutive month of YoY decline, the level is now almost the same as last year. Although the domestic market remains weaker compared to foreign demand, there are signs of gradual improvement.

Robust foreign demand

Foreign demand increased by 3.7% from the previous month to 92.9 billion yen. This marks the second consecutive month of growth in both month-on-month (MoM) and YoY comparisons. This is the first time in 14 months that foreign orders have exceeded 90 billion yen, with the last time being in April 2023 (91 billion yen).

Factors to watch closely in the final results are the presence of large orders and recent recovery trends in the Chinese market.