Japan’s machine tool orders total JPY 197.8 billion in August 2026; foreign demand sets new all-time high

The Japan Machine Tool Builders’ Association (JMTBA) released preliminary machine tool order figures for August 2026. Total orders reached JPY 197.8 billion, up 2.5% MoM and 64.7% YoY. Orders rose MoM, reversing the previous month’s decline, and continued to grow YoY for the 14th consecutive month, exceeding JPY 190 billion for the third consecutive month.

Domestic orders rise YoY for the eighth consecutive month

Domestic orders totaled JPY 51.5 billion, down 3.2% MoM but up 61.6% YoY. The MoM decline continued for the second consecutive month, partly due to fewer business days in the first half of the month during the summer holiday period, while YoY growth continued for the eighth consecutive month. Sectors related to data centers and semiconductor manufacturing equipment — key drivers since spring — are believed to have maintained solid performance, while awards from the first round of energy-saving subsidy applications may also have translated into new orders.

Foreign orders sustain historically high levels

Foreign orders totaled JPY 146.3 billion, up 4.6% MoM and 65.8% YoY. Orders exceeded JPY 145 billion for the first time in two months, setting a new all-time high. Orders have exceeded JPY 130 billion for six consecutive months since March this year, maintaining historically high levels. The MoM increase was the first in two months, while YoY growth continued for the 23rd consecutive month. As the data is preliminary, a regional breakdown is not yet available, but based on recent trends, capital investment is believed to remain strong, particularly in Asia and North America.