September 2024 Japan machine tool orders – total JPY 125.3 billion

October 25, 2024

The Japan Machine Tool Builders’ Association (JMTBA) has released the final figures for Japan’s machine tool orders in September 2024, with orders totaling 125.3 billion yen. This is the first month-on-month (MoM) increase in three months, but also the second consecutive month of year-on-year (YoY) decline. The monthly total exceeded 120 billion yen for the first time in two months. Despite the boost to domestic demand due to the fiscal half-year-year effect, the overall results indicate a lack of momentum in the recovery.

Domestic Orders

Domestic orders increased to 41.5 billion yen, surpassing the 40 billion yen mark for the first time in three months. This was the first MoM increase in three months, although it was the 25th consecutive month of YoY decline. Out of 11 industry sectors, nine recorded MoM growth, probably due to the fiscal half-year-end effect. However, seven sectors posted YoY declines. The Electrical & Precision Machinery sector showed substantial growth, exceeding 5 billion yen for the first time in two months. In contrast, Industrial Machinery and Automobiles remained sluggish, reflecting continued stagnation.

Foreign Orders

Foreign orders increased to 83.8 billion yen, a MoM increase for the first time in three months, but still showed a YoY decline for the second consecutive month. While foreign orders exceeded 80 billion yen for the first time in two months, they fell short of 85 billion yen, with a sense of stagnation, especially in Europe and North America.

Asia: The combined orders from Vietnam, which has continued to receive large-scale orders, and the strong Indian market pushed “Other Asia” above the 11 billion yen mark for the first time in nine months. East Asia, including China, although down from the previous month, remained stable and contributed to Asia as a whole exceeding 40 billion yen for the first time in six months.

North America: Despite expectations from the IMTS (International Manufacturing Technology Show), orders fell short and remained below 25 billion yen for the second consecutive month despite a month-on-month increase.

Europe: Although the figures showed some recovery from the previous month’s sharp decline, orders have remained below 15 billion yen since July, indicating a gradual slowdown in the region.

September Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	125,360	113.2	93.6
Domestic total	41,529	129.0	92.2
Industrial Machinery	16,406	111.0	92.9
Motor Vehicles	7,439	103.8	72.3
Electrical & Precision Machinery	5,959	228.1	104.1
Aircraft/Shipbuilding/Transport equipment	2,073	108.2	123.6
Foreign total	83,831	106.7	94.3
Asia	42,806	98.1	132.2
Europe	13,503	126.1	65.3
North America	24,777	107.8	72.5