Japan preliminary machine tool orders in October 2024: Orders down 2.3% to JPY 122.4 billion

November 14, 2024

The Japan Machine Tool Builders’ Association (JMTBA) has released preliminary figures for new machine tool orders in October 2024. The total amount of orders was 122.4 billion yen, down 2.3% from the previous month. This was the first month-on-month (MoM) decline in two months, although total orders exceeded 120 billion yen for the second consecutive month. Year-on-year (YoY), orders increased 9.9%, the first increase in three months. This some stability in orders despite ongoing weak investment sentiment.

Domestic demand

Domestic orders decreased 19.8% MoM to 33.3 billion yen, falling below 40 billion yen for the first time in two months. This was the 26th consecutive month of YoY decline and the first time in two months that domestic orders fell below 40 billion yen. The decline was attributed to a rebound effect following the fiscal year-end surge in September. Nevertheless, the YoY comparison was almost flat, suggesting that the domestic market has stabilized at a low level.

Foreign demand

Foreign orders increased 6.3% MoM to 89.0 billion yen, marking the second consecutive month of growth. On a YoY basis, foreign orders also increased for the first time in three months, exceeding 80 billion yen for two consecutive months and exceeding 85 billion yen for the first time in three months. This increase may have been due to several large orders, but further details will be provided in the final report.