Japan’s machine tool orders in November 2025, foreign demand ratio hits record high

The Japan Machine Tool Builders’ Association (JMTBA) announced preliminary figures for Japan’s machine tool orders in November 2025. Total orders reached 136.2 billion yen, down 5.0% month-on-month (MoM) but up 14.2% year-on-year (YoY). Although MoM figures declined for the first time in three months, YoY orders increased for the fifth consecutive month and exceeded 135 billion yen for the third straight month. Despite some monthly variations, strong demand from overseas continued to drive growth, with demand showing improvement compared to mid-year levels. 

Domestic orders fall to the lowest level of the year 

Domestic orders totaled 31.5 billion yen, down 11.6% MoM and 8.1% YoY, marking the second consecutive MoM decline and the first YoY decline in three months. Orders fell below 32 billion yen for the first time in three months, marking the lowest level this year. 

While recent months have shown signs of recovery in automotive-related demand, and positive feedback has been heard regarding MECHATRONICS TECHNOLOGY JAPAN (MECT 2025) held in Nagoya in late September, domestic orders lack the sustained momentum needed for continuous growth. The strong performance of foreign demand makes the domestic situation feel particularly underwhelming. 

Foreign orders maintain strong momentum with record-high ratio 

Foreign orders reached 104.7 billion yen, down 2.8% MoM but up 23.2% YoY—the first MoM decline in three months but the 14th consecutive YoY increase. Orders exceeded 100 billion yen for the second month in a row and approached 105 billion yen. 

While large-scale orders from various regions in October may have dropped off, overall strength persists. The foreign demand ratio reached 76.9%, setting a new record for the second consecutive month.