Japan’s July 2026 machine tool orders: JPY 193.1 billion, maintaining strong momentum after June’s record high

The Japan Machine Tool Builders’ Association (JMTBA) released preliminary machine tool orders for July 2026. Total orders reached JPY 193.1 billion, down 5.1% MoM but up 50.4% YoY. Although orders fell MoM for the first time in two months, year-on-year growth continued for the 13th consecutive month. Despite the MoM decline, orders remained close to the level recorded in March this year, when demand surged at the fiscal year-end.

Domestic orders exceed JPY 50 billion for the second consecutive month

Domestic orders totaled JPY 53.2 billion, down 8.2% MoM but up 50.2% YoY. Although orders fell MoM for the first time in two months, they remained above JPY 50 billion for the second consecutive month. YoY growth continued for the seventh consecutive month.

Domestic demand has shown signs of recovery since the second quarter. The final June figures confirmed that demand remained strong in the data center, semiconductor manufacturing equipment, and power generation-related sectors, while the automotive sector—which had long been stagnant—also showed renewed strength.

Foreign orders rank third-highest on record

Foreign orders totaled JPY 139.8 billion, down 3.8% MoM but up 50.5% YoY. Although orders fell for the first time in two months, the figure ranked third-highest on record, behind only June and March of this year. Year-on-year growth continued for the 22nd consecutive month, with the growth rate exceeding 50% for the second consecutive month.

Based on recent trends, capital investment is expected to remain at a high level, particularly in Asia and North America.