Data released by the Japan Machine Tool Builders’ Association (JMMA) on August 21st showed that total machine tool orders (confirmed value) rose 4% year-on-year in July to 128.3 billion yen, marking the first month of positive growth. In addition to strong Asian demand, Europe also saw growth after 18 months. The JMMA stated, “The impact of US tariffs appears to have eased, but there are also downside risks from increased tariffs.”
Overseas orders, which account for 70% of total orders, rose 5% to 92.9 billion yen. By region, Asia saw a 9% increase to 47.5 billion yen, marking its first month of growth. China, which accounts for nearly 70% of orders in Asia, saw strong growth in the automotive sector, with an 8% increase.
Europe grew 12% to 16.4 billion yen. Automotive orders were sluggish, but growth in defense equipment, electrical equipment, and precision-related orders drove overall growth. North America fell 1% to 26.7 billion yen, marking its first negative growth in three months. The US performed well, but Mexico saw a sharp decline.
Domestic orders in Japan fell 1% to 35.4 billion yen. By industry, orders for aviation, shipbuilding, and transportation machinery grew significantly, and automobiles also recovered, but on the other hand, orders for general machinery, electrical equipment, and precision machinery decreased.