The Japan Machine Tool Builders' Association reported that total global orders for Japanese machine tools reached JPY146.74 billion (US$924.61 million) in February 2026, marking a 0.8% increase month-on-month (MoM) and the first MoM growth in two months.

On a year-on-year (YoY) basis, orders surged 24.2%, extending the growth streak to eight consecutive months, highlighting a clear recovery in capital investment demand.

Total orders remained above the ¥140 billion level for the third consecutive month, supported by both domestic and overseas demand.

Strong Domestic and Global Demand to Support Further Growth

Overall demand in February remained solid, with both domestic and foreign orders contributing to growth. Looking ahead, the market is expected to gain further momentum, supported by government policies and a continued recovery in the global economy.

Analysts anticipate that year-end investment effects, combined with sustained improvement in overseas demand, will help create a virtuous economic cycle, driving continued expansion in the coming months.

Domestic Orders Expand, Led by Automotive and Machinery Sectors

Domestic orders in February totaled ¥37.16 billion (US$234.13 million), increasing 13.9% MoM and 10.1% YoY.

By Major Industry (MoM comparison):

• Automotive: up 19.2%
• Industrial machinery: up 17.5%
• Electronics & precision machinery: up 10.5%
• Aerospace, shipbuilding & transport equipment: down 35.0%

Foreign Orders Remain Resilient Despite Slight MoM Decline

Foreign orders stood at ¥109.58 billion (US$690.35 million) in February, down 3.0% MoM, marking the second consecutive monthly decline.

However, on a YoY basis, foreign orders remained robust, rising 29.8%, extending the growth streak to 17 consecutive months.

By Region:

Asia

Orders reached ¥55.20 billion (US$347.76 million), down 10.8% MoM but up 34.3% YoY.

• China: ¥37.46 billion (US$235.97 million), down 13.4% MoM
• India: ¥7.88 billion (US$49.63 million), up 34.9% MoM
• Thailand: ¥1.13 billion (US$7.09 million), down 38.6% MoM

​Europe

Orders totaled ¥16.71 billion (US$105.29 million), up 11.0% MoM and up 8.4% YoY.

North America

Orders stood at ¥35.77 billion (US$225.34 million), up 3.5% MoM and up 39.0% YoY.

• United States: ¥31.21 billion (US$196.63 million), showing a slight increase
  ​

(1 JPY = 0.0063 USD)

Read more: Japan Machine Tool Orders: January 2026