Preliminary January 2025 Japan Machine Tool Orders: Down 18.8% to JPY 116.1 billion

The Japan Machine Tool Builders’ Association (JMTBA) has released preliminary figures for Japan’s machine tool orders in January 2025. Total orders amounted to JPY 116.1 billion, down 18.8% from the previous month. This marked the first decline in two months and the first time the total dropped below JPY 120 billion in two months. However, on a year-on-year (YoY) basis, it was the fourth consecutive month of growth. 

Domestic demand remains stagnant 

Domestic orders totaled at JPY 31.9 billion, down 19.9% month-on-month (MoM). This was the first decline in three months, while YoY figures continued to grow for the third consecutive month. However, the total fell below JPY 35 billion for the first time in two months. Excluding the quarter-end months, domestic demand has remained within the range of JPY 30–35 billion, indicating a persistently stagnant domestic market. 

Foreign demand declines but remains above JPY 80 billion 

Foreign orders fell 18.4% MoM to JPY 84.1 billion. This marked the first decline in two months, but YoY figures have now risen for four consecutive months. While foreign orders fell below JPY 85 billion for the first time in two months, they have remained above JPY 80 billion for five consecutive months. The sharp decline was largely due to a reactionary drop from the previous month, but the order level has been similar to that of two months ago, suggesting no significant change in market conditions. 

Further details will be provided in the final confirmed figures.