Japan's Machine Tool Orders Slip Again in August 2024
Japan's machine tool orders fell for the second consecutive month in August, according to the latest JMTBA data. The total value of orders placed in August stood at 110.770 billion yen ($749.72 million), marking a 10.6% decrease from the previous month. This decline extends the two-month streak of falling orders and represents a 3.5% year-on-year decrease. Notably, this is the first time in six months that orders have dipped below the 120 billion yen mark.
The JMTBA expressed concerns about the sustained decline in orders, both domestically and overseas, and urged close monitoring of future trends to determine if this is a seasonal fluctuation or a more significant shift.
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Domestic (in Japan) orders in August 2024 totaled 32.192 billion yen ($217.88 million), reflecting a 9.8% month-on-month decrease and a 9.9% year-on-year decline. This marks the 24th consecutive month of year-on-year decreases in domestic orders.
While the automotive industry saw a 12.5% increase compared to the previous month, the machinery industry saw a 4.6% decline, and the electronics and precision industry recorded a 49.4% decrease. In contrast, the aerospace, shipbuilding, and transportation equipment industry surged 39.3%.
Overseas orders in August 2024 amounted to 78.578 billion yen ($531.84 million), down 10.9% from July. Although this represents a year-on-year increase of 0.6%, it marks the second consecutive month of decline.
A regional breakdown shows that:
- Asia recorded orders of 43.634 billion yen ($295.33 million), slightly down from July.
- China saw orders of 28.534 billion yen ($193.11 million), decreasing by 3.3%.
- India reported orders of 5.276 billion yen ($35.64 million), representing a 5.6% increase.
- Thailand experienced a 35.1% decline in orders, reaching 1.038 billion yen ($7.03 million).
- Europe recorded orders of 10.708 billion yen ($72.21 million), down 27.2%.
- North America saw orders of 22.980 billion yen ($154.99 million), declining by 14.7%.
- United States reported orders of 20.507 billion yen ($138.30 million), down 10.7%.
Read more: Japan Machine Tool Orders: July 2024
