August 2025 Japan machine tool orders total JPY 120.1 billion

September 25, 2025

The Japan Machine Tool Builders’ Association (JMTBA) announced the final figures for Japan’s machine tool orders in August 2025. Total orders reached JPY 120,172 million, marking the sixth consecutive month above the JPY 120 billion level. While orders recovered in North America, a decline in large-scale projects in Asia and fewer business days during summer holidays in Japan and Europe contributed to the second consecutive month-on-month decrease. Despite regional and sectoral variations, equipment demand remains steady, particularly in overseas markets.

Domestic orders decline to JPY 31.9 billion

Domestic orders decreased 10.0% from the previous month to JPY 31,895 million, falling below the JPY 35 billion mark for the first time in three months. Orders fell for the second consecutive month on a MoM basis and for the fifth consecutive month on a YoY basis, reflecting a sluggish capital investment environment. Overall, however, the trend remains flat.

By sector, “Aircraft/Shipbuilding/Transport equipment” rose for the second consecutive month both YoY and MoM, while “Industrial Machinery” recorded a second straight decline on both measures.

Foreign orders at JPY 88.3 billion remain solid

Foreign orders fell 5.0% from the previous month to JPY 88,277 million, marking the fifth consecutive MoM decline and the first time in six months below JPY 90 billion. However, YoY results rose for the 11th consecutive month, with order levels in the upper JPY 80 billion range still considered solid.

By region, “North America” saw previously postponed projects materialize following the finalization of new reciprocal tariffs in the U.S., along with large orders in the automotive sector. “Europe” declined for the first time in four months due to summer holidays, though YoY results increased for the second consecutive month. In “Asia,” large-scale projects in China and India were smaller in scale, bringing orders below JPY 45 billion for the first time in six months.

August Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	120,172	93.6	108.5
Domestic total	31.895	90.0	99.1
Industrial Machinery	13,281	97.6	89.9
Motor Vehicles	6,107	76.1	85.2
Electrical & Precision Machinery	3,329	82.6	127.4
Aircraft/Shipbuilding/Transport equipment	2,580	113.5	134.7
Foreign total	88,277	95.0	112.3
Asia	43,197	90.9	99.0
Europe	14,143	86.0	132.1
North America	29,077	108.8	126.5