Japan preliminary machine tool orders in September 2024: Orders up 13.1% to JPY 125.2 billion

October 10, 2024

The Japan Machine Tool Builders’ Association (JMTBA) has released preliminary figures for new machine tool orders in September 2024. The total amount of orders was 125.2 billion yen, up 13.1% from the previous month. This was the first increase in three months, and it was the first time in two months that the amount exceeded 120 billion yen. However, year-on-year (YoY) orders continued to decline for the second consecutive month, reflecting a cautious outlook due to financial trends and demand for equipment both in Japan and abroad.

Domestic demand

Domestic demand increased by 30.1% month-on-month (MoM) to 41.8 billion yen. This was the first increase in three months, but compared to the same month last year, it marked the 25th consecutive month of decline. Although the total exceeded 40 billion yen for the first time in three months, the growth remains somewhat lacking in strength, reflecting the positive effect of the end of the fiscal first half.

Foreign demand

Foreign demand rose 6.2% MoM to 83.4 billion yen. While this marked the first increase in three months, it represented the second consecutive month of YoY decline. Foreign demand exceeded 80 billion yen for the first time in two months but fell short of 85 billion yen. The final report will be closely watched for the impact of major trade shows held in the U.S. and Germany in September, as well as trends in China and Europe, where orders had fallen sharply the month before.