May 2025 Japan machine tool orders total JPY 128.7 billion

June 25, 2025

Demand remains strong for the third consecutive month, driven by overseas orders

The Japan Machine Tool Builders’ Association (JMTBA) has released the final figures for machine tool orders in May 2025. Total orders amounted to JPY 128.7 billion. Although this marked the second straight month of decline compared to April, orders remained above JPY 125 billion for the third consecutive month, maintaining a high level overall—particularly supported by solid overseas demand. Year-on-year (YoY), total orders increased for the eighth consecutive month.

Domestic orders

Domestic orders totaled JPY 33.0 billion, down both month-on-month (MoM) and YoY for the second consecutive month. While demand remains somewhat weak, the cumulative total for January to May was nearly flat, recording a slight 0.6% decrease compared to the previous five-month period, indicating a generally stable trend.

Order volumes were relatively firm in sectors such as construction equipment, food machinery, various motors, semiconductor manufacturing equipment, and aerospace and shipbuilding. In contrast, demand in the automotive sector was sluggish and saw a notable month-on-month decline, unlike other major industries.

Foreign orders

Foreign orders amounted to JPY 95.7 billion, reflecting the second consecutive MoM decline but the eighth consecutive YoY increase. Orders stayed above JPY 95 billion for the third month in a row, underscoring the continued strength in overseas demand.

By region

In North America, project investments in construction and automotive sectors helped keep order value above JPY 32 billion for the second straight month.

In Europe, improvement was observed especially in the EU zone. Orders from Italy exceeded JPY 3.0 billion for the first time in 22 months, and total orders from Europe surpassed JPY 15 billion for the first time in two months. However, this still falls short of the average monthly value exceeding JPY 17 billion recorded during the first half of 2024.

In Asia, demand remained generally strong. Although orders for motor vehicles in China declined slightly from April, and one-off demand for aerospace-related equipment in Southeast Asia and India tapered off, the region maintained momentum, with total orders surpassing JPY 45 billion for the third consecutive month.

Outlook

A sentiment survey conducted by JMTBA in early June among member companies regarding order expectations for the third quarter of 2025 showed improved results compared to the March survey, suggesting optimism for a recovery in the second half of the year.

However, external risks—including new U.S. tariff measures and heightened geopolitical tensions between Israel and Iran—may influence global machine tool demand. These developments will continue to be closely monitored.

May Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	128,718	98.9	103.4
Domestic total	33,016	96.0	94.8
Industrial Machinery	14,328	95.4	99.8
Motor Vehicles	4,783	90.8	62.0
Electrical & Precision Machinery	4,823	99.9	110.3
Aircraft/Shipbuilding/Transport equipment	2,893	148.7	142.0
Foreign total	95,702	99.9	106.7
Asia	45,167	93.6	106.0
Europe	15,833	114.9	91.7
North America	32,791	102.4	118.7