February 2025 Japan machine tool orders – total JPY 118.1 billion

March 25, 2025

The Japan Machine Tool Builders’ Association (JMTBA) has released final figures for Japan’s machine tool orders in February 2025. Total orders amounted to JPY 118.1 billion, marking the first increase in two months on a month-on-month (MoM) basis and the fifth consecutive month of year-on-year (YoY) growth. However, total orders remained below JPY 120 billion for the second consecutive month, reflecting a continued flat trend.

Domestic orders: JPY 33.7 billion

Domestic orders increased for the first time in two months MoM and for the fourth consecutive month YoY, totaling JPY 33.7 billion. However, orders remained below JPY 35 billion for the second consecutive month, indicating sluggish domestic demand.

Among the 11 industry sectors, five recorded MoM growth and seven recorded YoY growth. Among the four major industries, Electrical & Precision Machinery was the only sector to decline MoM, while Motor Vehicles and Aircraft/Shipbuilding/Transportation Equipment increased YoY. In particular, Aircraft/Shipbuilding/Transport Equipment exceeded JPY 4 billion for the first time in nine years and one month.

Most orders came from large and medium-sized companies, while many small and medium-sized enterprises (SMEs) appeared to be delaying capital investment in anticipation of government subsidies that will begin in the new fiscal year in April.

Foreign orders: JPY 84.4 billion

Foreign orders reached JPY 84.4 billion, up slightly from the previous month and marking the fifth consecutive YoY increase. This was the sixth consecutive month that foreign orders exceeded JPY 80 billion.

Asia: Orders from Other Asia fell below JPY 10 billion for the first time in seven months due to the absence of large-scale electrical machinery orders from India. In China, cautious sentiment ahead of the National People’s Congress in early March led to a second consecutive MoM decline. Nevertheless, total orders from Asia remained robust, exceeding JPY 40 billion for the 11th consecutive month.

Europe: European orders rose above JPY 15 billion for the first time in two months, supported by increased demand in Aircraft/Shipbuilding/Transport Equipment and Trading Companies & Agents. Germany recorded the fourth consecutive month of MoM growth, exceeding JPY 3.5 billion for the first time in five months, while Other Western Europe exceeded JPY 4 billion for the first time in two months.

North America: Orders from North America exceeded JPY 25 billion for the first time in two months, supported by growth in Aircraft/Shipbuilding/Transport Equipment and Trading Companies & Agents. Orders from the United States exceeded JPY 23 billion for the first time in two months. However, orders from Mexico fell below JPY 1 billion for the first time in eight months.

February Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	118,198	101.8	103.5
Domestic total	33,767	105.5	103.8
Industrial Machinery	12,536	105.8	90.0
Motor Vehicles	6,989	117.0	104.9
Electrical & Precision Machinery	3,241	74.8	83.7
Aircraft/Shipbuilding/Transport equipment	4,189	205.5	226.6
Foreign total	84,431	100.3	103.4
Asia	41,108	91.8	112.9
Europe	15,422	116.7	90.0
North America	25,742	106.6	100.4