Japan’s January 2026 machine tool orders: foreign demand ratio hits record high

February 12, 2026

The Japan Machine Tool Builders’ Association (JMTBA) announced preliminary machine tool order figures for January 2026. Total orders reached JPY 145.5 billion, down 8.2% month-on-month (MoM) but up 25.3% year-on-year (YoY). While MoM orders declined for the first time in two months due to seasonal factors, YoY orders increased for the seventh consecutive month, exceeding JPY 140 billion for the second consecutive month. The momentum of capital investment, centered on foreign demand from late last year, appears to have continued into the new year.

Domestic demand remains in sideways trend

Domestic orders totaled JPY 32.6 billion, down 18.2% MoM and up 2.0% YoY. MoM orders declined for the first time in two months and fell below JPY 35 billion for the first time in two months. The sideways trend continues.

Foreign demand sustains extremely high levels

Foreign orders totaled JPY 112.9 billion, down 4.9% MoM but up 34.2% YoY. While MoM orders declined slightly by about 5% for the first time in two months, YoY orders increased significantly. Orders exceeded JPY 110 billion for the second consecutive month, sustaining a very high level—the second-highest on record—following the previous month’s (December 2025) performance. As a result, the foreign demand ratio reached 77.6%, setting a new record high for the first time in two months.

Regional and industry breakdowns will be provided in the final report.