Japan machine tool orders top JPY 145.5 billion in January; overseas ratio hits record 77.6%

March 2, 2026

Orders exceed JPY 140 billion for second consecutive month

The Japan Machine Tool Builders’ Association (JMTBA) announced the final machine tool order figures for January 2026. Total orders reached JPY 145.5 billion, maintaining a high level exceeding JPY 140 billion for the second consecutive month. While orders declined month-on-month (MoM) for the first time in two months due to seasonal factors, year-on-year (YoY) orders increased for the seventh consecutive month, with the growth rate exceeding 20% for the first time in 44 months. The strong performance from late last year, centered on foreign demand, continues into the new year.

Domestic demand remains in flat trend

Domestic orders totaled JPY 32.6 billion, down 28.8% MoM. Orders declined MoM for the first time in two months and increased slightly YoY for the first time in three months, but the flat trend continues. All four major industries increased YoY, but on a MoM basis, “Electrical & Precision Machinery” and “Aircraft/Shipbuilding/Transport Equipment” grew due to rising demand from data centers, semiconductor manufacturing equipment, aircraft, and shipbuilding, while “Industrial Machinery” and “Motor Vehicles” declined. Orders across all industries centered on large and medium-sized enterprises, with signs that small and medium-sized enterprises are deferring capital investment pending acceptance of various subsidies planned for the next fiscal year.

Foreign demand sustains second-highest level on record

Foreign orders totaled JPY 113.0 billion, down 4.9% MoM. While orders declined MoM for the first time in two months, they exceeded JPY 110 billion for the second consecutive month, recording the second-highest order value on record after last month. YoY increases continued for the 16th consecutive month, and the foreign demand ratio reached a record high of 77.6% of total orders.

By region, Asia significantly exceeded the previous record of JPY 56.9 billion set in November 2017, surpassing JPY 60 billion for the first time. China reached a record high of JPY 43.3 billion as automotive-related demand strengthened again and “Electrical & Precision Machinery” remained robust. Orders may have also been boosted ahead of the Chinese New Year holidays beginning in mid-February. India maintained a high level at JPY 5.8 billion, while Taiwan exceeded JPY 3.0 billion for the first time in 41 months. Europe fell below JPY 16 billion for the first time in four months as large orders dropped off following the fiscal year-end effects. While many countries in the region declined MoM, Italy showed a slight MoM increase, possibly due to policy effects. North America continued to receive large orders in “Motor Vehicles” and aerospace-related sectors, though not at last month’s level, declining by approximately JPY 7 billion from the previous month’s performance—likely a temporary post–fiscal year-end adjustment.

January Summary

	Amount (million yen)	MoM change (%)	YoY change (%)
Total Orders	145,579	91.8	125.3
Domestic total	32,624	81.8	102.0
Industrial Machinery	11,995	75.7	101.2
Motor Vehicles	6,572	72.6	110.0
Electrical & Precision Machinery	5,224	133.1	120.6
Aircraft/Shipbuilding/Transport equipment	3,430	114.8	168.3
Foreign total	112,955	95.1	134.2
Asia	61,854	117.7	138.1
Europe	15,051	67.8	113.9
North America	34,554	83.4	143.0