Japan machine tool orders August final yy -16.5%

Sep 18, 2015

The total value of machine tool orders in August was 107.04 billion yen. This was a decrease of 17.6% compared to July and marked the third consecutive month-on-month decline. Moreover, this figure represented a decrease of 16.5% compared to the same month of the previous year, with August posting the first year-on-year decline in twenty-three months. The total amount of orders fell below 120 billion yen for the first time in eighteen months. However, this has still passed 100 billion yen for twenty-fourth consecutive months. Reflecting the influence of ending of policy effects and special demand, August orders were decreased. It is difficult to make an overall assessment at the moment, thus we will keep a close watch on the trend.

Domestic orders fell by 20.2% from July, amounting to 47.73 billion yen. This marked the the second consecutive month of month-on-month decline. However, this figure was an increase of 13.8% over the same month of the previous year and marked the twenty-sixth consecutive month of year-on-year growth. Looking at major industries, orders compared to July fell by 23.2% in industrial machinery, by 16.1% in motor vehicles, by 41.7% in electrical & precision machinery, and rose by 56.9% in aircraft, shipbuilding & transport equipment.

Foreign orders fell by 15.4% from July to 59.31 billion yen. This marked the five consecutive months of month-on-month decline. Foreign orders also showed a decrease of 31.2% from the same month of the previous year, with August posting the third consecutive month of decline. By region, orders from Asia fell by 12.7% from July to 26.49 billion yen. This was also a decrease of 45.6% from the same month of the previous year. Orders from Europe fell by 24.1% from July to 13.27 billion yen. This was also a decrease of 5.8% from the same month of the previous year. Orders from North America fell by 13.1% from July, amounting to 18.66 billion yen. This figure was also a decrease of 16.7% from the same month of the previous year.

Picture: ForexLive

Full Report: JMTBA