Japan’s machine tool orders rise 3.4% month-on-month in June 2025

The Japan Machine Tool Builders’ Association (JMTBA) has released preliminary figures for Japan’s machine tool orders in June 2025. Total orders amounted to 133.1 billion yen, a 3.4% increase compared to May. Although this represented the first year-on-year (YoY) decline in nine months, it also marked a return to above the 130-billion-yen level for the first time in two months. 

In recent months, attention has been focused on the potential impact of U.S. tariff measures on capital investment. However, as of June, there were no clear signs of either domestic or overseas demand being significantly affected. 

Domestic orders approach 40 billion yen 

Domestic orders rose by 20.8% month-on-month (MoM) to 39.8 billion yen, increasing for the first time in two months. The figure approached the 40-billion-yen mark, driven possibly by several large-scale orders and increased purchasing by small and medium-sized manufacturers following government subsidy approvals. 

While domestic capital investment remains generally weak, a gradual recovery is anticipated in the latter half of the year. 

Foreign orders remain robust despite slight decline 

Foreign orders declined by 2.5% from the previous month to 93.2 billion yen, marking the third consecutive month of decline. Nonetheless, the figure remained above 90 billion yen. This marks the fourth consecutive month that foreign orders have exceeded the 90-billion-yen level—a streak not seen since the first half of 2022, when demand rebounded strongly following the pandemic. 

Despite growing uncertainty in the global economy, overall demand for capital investment remains firm. 

Further details will be provided in the final report.