The Current Condition of the Japanese Machine Tool Industry

Dec 14, 2020

The total value of machine tool orders in October was 82.21 billion yen. This was a decrease of 2.2% compared to September 2020 and marked the first month of month-on-month decline in two months. Moreover, this figure represented a decrease of 6.0% compared to the same month of the previous year and marked the twenty-fifth consecutive month of year-on-year decline.

The total amount of orders decreased from the previous month due to the reactionary decrease of the effect at the end of September, but the rate of decrease is small, exceeding 80 billion yen for two consecutive months, and both domestic and foreign demand have continued to recover moderately.

The movement of recovery is becoming clear not only in China but also in other regions, while we would like to pay close attention to the spread of infection and the resumption of economic activity.

Domestic orders fell by 4.6% from September, amounting to 28.89 billion yen. This marked the first month of month-on-month decline in two months. Furthermore, this figure was a decline of 13.6% from the same month of the previous year and marked the twenty-third consecutive months of year-on-year decline. Looking at major industries, orders compared to September fell by 9.0% in industrial machinery, rose by 22.1% in motor vehicles, fell by 34.1% in electrical & precision machinery, and by 35.1% in aircraft, shipbuilding & transport equipment.

Foreign orders fell by 0.9% from September to 53.32 billion yen, marked the first month of month of month-on-month decline in two months. Foreign orders also showed a decline of 1.3% from the same month of the previous year, and this marked the first month of year-on-year decline in two months. By region, orders from Asia fell by 4.3% from September to 28.28 billion yen. However, this was an increase of 34.6% over the same month of the previous year. Orders from Europe rose by 13.6% over September to 8.46 billion yen. This was a decrease of 28.5% from the same month of the previous year. Orders from North America fell by 4.2% from September, amounting to 15.11 billion yen. This figure was a decline of 19.0% from the same month of the previous year.

Detail report : Monthly Machine Tool Orders (October 2020)