Japanese Machine Tools Orders

Japanese Machine Tools Orders in May 2023 continued to shrink by 22%

Latest Update July 1, 2023
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The Japan Machine Tool Builders' Association (JMTBA) reported the total value of machine tool orders in May 2023 was 119.52 billion yen ($830 million). This represented a decrease of 9.9% compared to April 2023, marking the second consecutive month of month-on-month decline. Additionally, it indicated a decline of 22.1% compared to May of the previous year, marking the fifth consecutive month of year-on-year decline.

It's worth noting that the total orders fell below 120 billion yen for the first time in 27 months since February 2021 when it was at 105.6 billion yen. However, the total orders still exceeded 100 billion yen for 28 consecutive months, indicating a relatively healthy level of demand.

The decline in orders in May can be attributed to seasonal factors and the fallout of large-scale orders. However, the report does not mention any significant changes in the market overall. The Japan Machinery Association (JMTBA) will continue to monitor future trends closely.

Domestic (in Japan) orders in May 2023 amounted to 37.81 billion yen, which represented a decline of 9.4% compared to April. This marked the second consecutive month of month-on-month decline. Furthermore, it indicated a decrease of 23.6% compared to the same month of the previous year, marking the ninth consecutive month of year-on-year decline.

When examining major industries, compared to April, orders fell by 9.7% in industrial machinery, by 3.1% in motor vehicles, and by 15.8% in electrical and precision machinery. However, orders in the aircraft, shipbuilding, and transport equipment industry rose by 8.6%.

Foreign orders in May 2023 amounted to 81.72 billion yen, reflecting a decline of 10.2% compared to April. This marked the second consecutive month of month-on-month decline. Similarly, it indicated a decrease of 21.3% compared to the same month of the previous year, marking the fifth consecutive month of year-on-year decline.

Looking at orders by region, compared to April, orders from Asia fell by 12.4% to 36.01 billion yen. This represented a decrease of 25.5% from the same month of the previous year. Orders from Europe fell by 13.8% to 17.90 billion yen, indicating a decrease of 12.7% compared to the same month of the previous year. Orders from North America fell by 4.9% to 25.34 billion yen, reflecting a decrease of 23.3% from the same month of the previous year.

These figures demonstrate the continued decline in both domestic and foreign machine tool orders in May 2023. 

Focusing orders from Thailand amounted to 1,617 million yen, an increase of 2.0% compared to the same month of the previous year.