October 2024 Japan machine tool orders – total JPY 122.5 billion

November 22, 2024

The Japan Machine Tool Builders’ Association (JMTBA) has released the final figures for Japan’s new machine tool orders in October 2024, with orders totaling JPY 122.5 billion. This is the first month-on-month (MoM) decrease in two months, but the first year-on-year (YoY) increase in three months. The total has been above JPY 120 billion for two consecutive months. While there was a rebound in domestic demand last month from the fiscal half-year-end effect, external demand remained strong, with large orders keeping the overall level steady.

Domestic Orders

Domestic demand decreased by 2.9% MoM, the first decline in two months, to a total of JPY 33.4 billion. On a YoY basis, domestic demand continued to decline for the 26th consecutive month. It fell below JPY 40 billion for the first time in two months, and also fell below JPY 35 billion for the second consecutive month.
Among the 11 industries, 10 experienced a MoM decline, largely due to the rebound effect from the end of the fiscal half-year. Overall, order levels were close to the levels seen at the beginning of the year, and recovery in major sectors remains difficult to discern, with the market movement remaining in a range-bound pattern.

Foreign Orders

Foreign orders continued to grow, up 4.5% MoM and up for the first time in three months YoY to JPY 89.1 billion. This was the second consecutive month that foreign demand exceeded JPY 80 billion, and the first time in three months that it exceeded JPY 85 billion.

Asia: In Asia, robust orders in China, driven by the general machinery and automotive sectors, as well as large orders in Vietnam and India, pushed the region’s total to over JPY 45 billion for the first time in four months. In particular, India recorded its highest order amount in 22 months, while Vietnam exceeded JPY 3 billion for the first time in nearly 9.5 years.

Europe: In Europe, substantial orders in other Western Europe helped push the region’s total above JPY 15 billion for the first time in four months, returning to levels seen at the beginning of the year. However, the EU region continued to experience sluggish growth.

North America: In North America, Canada saw large orders, but the U.S. fell below JPY 20 billion for the first time in six months, bringing the region’s total below JPY 22 billion for the first time in 42 months.

While the outlook in regions outside Asia remains somewhat subdued, the domestic market is expecting the positive impact of JIMTOF 2024. The coming months will be closely watched for any changes in the industry.

October Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	122,550	97.8	109.4
Domestic total	33,441	80.5	99.4
Industrial Machinery	13,524	82.4	95.8
Motor Vehicles	6,826	91.8	85.6
Electrical & Precision Machinery	4,199	70.5	122.7
Aircraft/Shipbuilding/Transport equipment	2,465	118.9	200.4
Foreign total	89,109	106.3	113.6
Asia	49,884	116.5	163.3
Europe	16,509	122.3	90.7
North America	21,203	85.6	77.0