The Japan Machine Tool Builders’ Association (JMTBA) reported that Japan’s total machine tool orders reached JPY 203.38 billion (USD 1.28 billion) in June 2026, up 14.9% from May and marking the first month of month-on-month growth in three months. Compared with the same month last year, orders surged 52.7% YoY, marking the 12th consecutive month of year-on-year growth.

June also marked a significant milestone, with total machine tool orders surpassing JPY 200 billion for the first time. Orders remained above JPY 120 billion for the 16th consecutive month, highlighting continued strength in capital investment in machinery and production equipment despite economic and geopolitical uncertainties in global markets.

JMTBA expects demand for machinery and production equipment to continue expanding. Domestic demand is supported by government policy measures, while overseas demand continues to benefit from strong investment related to AI and robotics. However, businesses will need to monitor the potential impact of inflation concerns on capital investment.

Domestic Orders Rise 45.5%, Driven by Automotive and Electronics

Domestic machine tool orders in Japan totaled JPY 58.02 billion (USD 365.53 million) in June, up 28.0% from May and 45.5% from the same month last year, indicating a recovery in domestic capital investment.

By Major Industry (MoM comparison):

• Automotive: up 63.4%
• Industrial machinery: up 59.6%
• Electronics & precision machinery: up 89.9%
• Aerospace, shipbuilding & transport equipment: down 65.8%

The strong growth in orders from the industrial machinery, automotive, and electrical and precision machinery sectors reflects a recovery in manufacturing investment, particularly among industries requiring high-precision machine tools and advanced production systems. Meanwhile, orders from the aircraft, shipbuilding and transport equipment sector declined from the previous month.

Overseas Orders Reach a New Record High

Foreign machine tool orders reached JPY 145.36 billion (USD 915.77 million) in June, up 10.4% from May and marking the first month of month-on-month growth in three months. Year-on-year growth continued for the 21st consecutive month.

By Region:

Asia

JPY 81.42 billion (USD 512.95 million), up 8.5% MoM

• China: JPY 56.49 billion (USD 355.88 million), up 10.2% MoM
• India: JPY 9.16 billion (USD 57.68 million), up 58.6% MoM
• Thailand: JPY 1.87 billion (USD 11.77 million), down 7.4% MoM

​Europe

JPY 19.36 billion (USD 121.97 million), up 15.2% MoM

North America

JPY 40.65 billion (USD 256.09 million), up 8.8% MoM

• United States: JPY 36.00 billion (USD 226.79 million), up 18.6% MoM

Overall, the June results point to a clear recovery in the Japanese machine tool market after orders slowed in April and May. Overseas orders, in particular, reached a new record high, while strong demand from Asia remained an important driver of the global machine tool market.

(1 JPY = 0.0063 USD)

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