Japanese Machine Tools Orders

Japanese Machine Tools Orders in June 2023 continued to shrink by 21%

Latest Update August 4, 2023
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The Japan Machine Tool Builders' Association (JMTBA) reported the total value of machine tool orders in June 2023 was 122.03 billion yen ($860 million). However, despite the impressive figures, this value represents a 21.1% decline and marked the sixth consecutive month of year-on-year decline.

Despite the overall decline in orders, June marked the first month in the last three with consecutive monthly growth. Orders increased by 2.1% compared to the previous month, signifying a positive trend in the market. Additionally, this is the first time in two months that orders have surpassed the 120,000 million yen mark, and it also marks 29 consecutive months with orders exceeding 100,000 million yen.

JMTBA expressed its opinion that the market conditions, both domestically and internationally, have not shown significant changes and continue to be in a recovery phase. The association is closely monitoring the market's developments for the foreseeable future.

Domestic (in Japan) orders in June 2023, figures amounted to 40,850 million yen ($288 million), showing a substantial 30.4% decline from the previous year. Nevertheless, it was the first month in the last three to experience consecutive monthly growth. Notably, the automotive industry saw a decrease of 6.9% in orders, while the machinery industry witnessed an increase of 9.4%, and the electronics and precision industry experienced a remarkable surge of 31.6%. Meanwhile, the aerospace, shipbuilding, and transportation equipment industry faced a decline of 30.0%.

Foreign orders in June 2023, saw a total of 81,175 million yen ($573 million), representing a 15.5% decrease from the previous year.

  • Asia had a total of 33,307 million yen ($235 million) in orders, showing a substantial decline of 35.5%.
  • China's orders amounted to 19,091 million yen ($135 million), experiencing a significant decrease of 45.1%.
  • Europe saw a notable increase in orders, reaching 19,368 million yen ($137 million), reflecting a growth of 28.3%.
  • North America had a total of 26,236 million yen ($185 million) in orders, showing a modest increase of 3.6%.
  • United States with orders totalling 22,279 million yen ($157 million), marking an 8.8% decrease.
  • Thailand had a total of 1,776 million yen ($ 12.5 million) in orders, showing a decline of 10.7%.