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August 2025 Japan machine tool orders fall below JPY 120 billion for first time in six months

September 11, 2025

The Japan Machine Tool Builders’ Association (JMTBA) has released preliminary figures for Japan’s machine tool orders in August 2025. 

Total orders amounted to 119.7 billion yen, down 6.7% from the previous month. Amid ongoing global economic uncertainty and a seasonal decline in business activity during summer holidays in Japan, Europe, and North America, the total fell below 120 billion yen for the first time in six months. Orders decreased month-on-month (MoM) for the second consecutive month, but rose year-on-year (YoY) for the second straight month. Excluding the temporary dip in June, the modest recovery trend that began last autumn has continued. 

Domestic demand 

Domestic orders totaled 31.7 billion yen, down 10.5% MoM. This marked the second consecutive monthly decline and the fifth straight YoY decrease, bringing the figure below 32.0 billion yen for the first time in seven months. Even considering the Obon holiday slowdown, the lack of momentum remains evident. However, with September marking the close of the fiscal half-year, a rebound is anticipated. 

Foreign demand 

Foreign orders amounted to 87.9 billion yen, down 5.3% MoM and below 90.0 billion yen for the first time in six months. This also marked the fifth consecutive monthly decline, reflecting continued caution about the global outlook. The slowdown may also reflect the impact of summer holidays, which reduced the scale of large orders. 

On a YoY basis, however, foreign orders increased for the 11th consecutive month, underscoring the persistence of solid capital investment demand. 

A more detailed breakdown will be provided in the confirmed report. 

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