July 2024 Japan machine tool orders – total JPY 123.9 billion

August 23, 2024

The Japan Machine Tool Builders’ Association (JMTBA) has released the final figures for Japan’s machine tool orders in July 2024, with orders totaling JPY 123.9 billion. Although this is the first month-on-month decline in three months, it is the third consecutive month of year-on-year growth. Although it fell below JPY 130 billion for the first time in two months, the total has been above JPY 120 billion for five consecutive months, indicating a steady performance.

Domestic Orders

Domestic orders were JPY 35.7 billion, showing a month-on-month decline for the first time in two months and marking the 23rd consecutive month of year-on-year declines. This is the first time in two months that domestic orders have fallen below JPY 40 billion. Among the 11 industry sectors, seven experienced declines both month-on-month and year-on-year. While overall domestic demand remains weak, the Electrical & Precision Machinery sector posted a month-on-month increase. However, this was offset by declines in industries such as Motor Vehicles and Aircraft/Shipbuilding/Transport Equipment, which had received substantial orders in the previous month.

Foreign Orders

Foreign orders totaled JPY 88.2 billion, the first month-on-month decline in three months, but the third consecutive month of year-on-year growth. Although foreign orders fell below JPY 90 billion for the first time in two months, they have exceeded JPY 85 billion for three consecutive months, maintaining a strong performance.

Asia: Although orders from China declined from the previous month’s strong performance, they remained close to JPY 30 billion, keeping total orders from Asia above JPY 40 billion for the fourth consecutive month.

North America: The North American market saw significant orders, including a large order in the Aircraft/Shipbuilding/Transport Equipment sector from the United States, resulting in the second-highest monthly orders on record. In addition, large orders in the Motor Vehicles sector in Mexico pushed North American orders above JPY 25 billion for the first time in two months.

Europe: Orders from Europe fell below JPY 15 billion for the first time in 39 months due to the impact of summer vacations. Orders from Europe have been stable at around JPY 17 billion since the beginning of 2024, but future trends will be closely watched.

July Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	123,942	92.6	108.4
Domestic total	35,703	87.5	90.7
Industrial Machinery	15,493	94.1	89.6
Motor Vehicles	6,370	68.9	75.2
Electrical & Precision Machinery	5,218	131.4	144.6
Aircraft/Shipbuilding/Transport equipment	1,375	50.3	105.7
Foreign total	88,239	94.9	117.7
Asia	43,774	93.1	150.3
Europe	14,710	85.0	76.8
North America	26,943	114.2	109.6