The Japan Machine Tool Builders’ Association (JMTBA) reported that total machine tool orders received by Japanese manufacturers in May 2026 reached JPY 177.01 billion (USD 1.12 billion). The figure decreased 6.3% from April, marking the second consecutive month of month-on-month decline. However, orders increased 37.5% year-on-year, extending YoY growth to the 11th consecutive month.

Although orders slowed from JPY 188.97 billion in April, they remained at a high level. Total orders exceeded JPY 120 billion for the 15th consecutive month, reaching the fourth-highest level on record. The results indicate that capital investment in machine tools remains resilient despite economic and geopolitical uncertainties.

JMTBA expects demand for capital equipment to continue growing, with domestic demand supported by government policy measures and overseas demand driven by robust investment related to AI and robotics. However, businesses will need to monitor the potential impact of inflation concerns on capital investment.

⟶ Read more: Japan Machine Tool Orders Forecast to Reach ¥2 Trillion in 2026, Driven by Semiconductor and Data Center Demand

Domestic Orders Rise 37.3% YoY Despite Monthly Decline

Domestic orders in Japan totaled JPY 45.33 billion (USD 285.57 million) in May, down 8.0% from April but up 37.3% from the same month last year. The result indicates that demand for machine tools in Japan remains strong compared with the previous year.

By Major Industry (MoM comparison):

• Automotive: down 17.1%
• Industrial machinery:down 7.6%
• Electronics & precision machinery: down 34.3%
• Aerospace, shipbuilding & transport equipment: up 89.7%

The strong increase in orders from the aircraft, shipbuilding and transport equipment sector highlights continued investment in advanced manufacturing and demand for high-precision machine tools, despite slower orders from the automotive and electrical and precision machinery sectors.

📖 Related Reading: Precision Manufacturing: From Accuracy to a Competitive Advantage in Modern Manufacturing

Overseas Orders Remain a Key Growth Driver

Foreign orders totaled JPY 131.68 billion (USD 829.57 million) in May, down 5.7% from April and marking the second consecutive month of month-on-month decline. However, foreign orders increased 37.6% year-on-year, extending YoY growth to the 20th consecutive month.

By Region:

Asia

JPY 75.03 billion (USD 472.70 million), down 1.6% MoM but up 66.1% YoY

• China: JPY 51.25 billion (USD 322.88 million), down 3.9% MoM
• India: JPY 5.77 billion (USD 36.35 million), down 24.6% MoM
• Thailand: JPY 2.02 billion (USD 12.71 million), up 49.2% MoM

​Europe

JPY 16.80 billion (USD 105.84 million), down 17.2% MoM but up 6.1% YoY

North America

: JPY 37.36 billion (USD 235.37 million), down 9.0% MoM but up 13.9% YoY

• United States: JPY 30.35 billion (USD 191.21 million), down 15.2% MoM

Overall, the data shows that Japan’s machine tool market continues to maintain a strong order base despite entering a period of moderation from the high levels seen earlier in the year. Asia remains particularly strong, with orders up significantly from the previous year.

(1 JPY = 0.0063 USD)

⟶ Read more: Japan Machine Tool Orders: April 2026