January 2025 Japan machine tool orders – total JPY 113.7 billion

February 26, 2025

The Japan Machine Tool Builders’ Association (JMTBA) has released the confirmed figures for Japan’s machine tool orders in January 2025. Total orders amounted to JPY 113.7 billion, marking the first month-on-month (MoM) decline in two months, while maintaining year-on-year (YoY) growth for the fourth consecutive month. Seasonal factors and a reactionary decline following large overseas orders in the previous month led to a drop below JPY 120 billion for the first time in two months.

Domestic demand

Domestic orders totaled JPY 31.9 billion, declining for the first time in three months on a MoM basis, but increasing for the third consecutive month YoY. This was the first time in two months that domestic orders fell below JPY 35 billion.

Among 11 industry sectors, MoM orders declined in eight sectors, while YoY figures fell in six sectors. All four major industries posted double-digit MoM declines, likely due to reduced working days at the beginning of the year and companies waiting for government subsidies. However, the overall level of new orders has remained similar to the previous year, indicating continued stagnation in domestic demand.

Foreign demand

Foreign orders totaled JPY 84.1 billion, declining MoM for the first time in two months but increasing YoY for the fourth consecutive month. A reactionary drop following large orders from China and the U.S., as well as fiscal year-end effects in Europe and North America in December, led to a drop below JPY 85 billion for the first time in two months.

Asia: A reactionary decline following large orders from China in the previous month, coupled with the impact of the Lunar New Year holiday in China, led to a decline of more than 20% MoM in East Asia. However, India recorded its second-highest order volume ever, driven by large orders for electrical machinery, pushing total orders from Other Asia above JPY 13 billion for the first time in three months. Overall, Asia has maintained orders above JPY 40 billion for 10 consecutive months, demonstrating continued stability.

Europe: While Germany exceeded JPY 3 billion for the first time in four months, the EU total fell below JPY 10 billion for the first time in five months. In addition, Turkey recorded less than JPY 1 billion for the first time in 20 months, reflecting overall sluggish demand. As a result, total European orders fell below JPY 14 billion for the first time in four months.

North America: In a reactionary decline following large aerospace-related orders in the U.S. in the previous month, total orders in North America fell below JPY 25 billion for the first time in three months. However, Mexico recorded more than JPY 1.5 billion in automotive-related orders, exceeding the JPY 1.5 billion mark for the first time in five months.

Overall, both domestic and overseas orders remained largely in line with the previous year, reflecting a flat market trend.

January Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	116,146	81.2	104.7
Domestic total	31,996	80.1	104.6
Industrial Machinery	11,854	78.6	96.5
Motor Vehicles	5,973	69.1	85.2
Electrical & Precision Machinery	4,330	89.3	106.4
Aircraft/Shipbuilding/Transport equipment	2,038	70.2	150.2
Foreign total	84,150	81.6	104.7
Asia	44,799	87.3	121.7
Europe	13,218	80.8	79.0
North America	24,158	75.5	99.3