The Japan Machine Tool Builders’ Association (JMTBA) has reported a slight decline in global orders for Japanese machine tools in July 2024. Total orders reached 123.942 billion yen ($843.86 million), marking a 7.4% decrease from the previous month. This downturn is the second consecutive month orders have fallen below the 130 billion yen mark. However, on an annualized basis, orders have increased by 8.4%.

The JMTBA noted that while July's orders declined slightly compared to the previous month, there have been no significant changes in overall business conditions. The association emphasized the need to closely monitor future trends to anticipate a full recovery in orders.

Domestic (in Japan) orders in July 2024 stood at 35.703 billion yen ($243.08 million), reflecting a 12.5% month-on-month decline. This is the first decrease in two months. Additionally, on an annual basis, domestic orders have contracted for 23 consecutive months, declining by 9.3% in July.

A breakdown by industry reveals that the automotive sector experienced a 31.1% decrease compared to June, while the machinery industry saw a 5.9% decline. Conversely, the electronics and precision industry recorded a 31.4% increase, and the aerospace, shipbuilding, and transportation equipment industry suffered a 49.7% decrease.

Overseas orders in July 2024 amounted to 88.239 billion yen ($600.78 million), marking a 5.1% month-on-month decrease. This is the first decline in two months. However, on an annualized basis, overseas orders have risen by 17.7% for three consecutive months.

A regional breakdown shows that:

• Asia recorded orders of 43.774 billion yen ($298.04 million), down 6.9% from June.
  • China saw orders of 29.495 billion yen ($200.82 million), decreasing by 6.9%.
  • India reported orders of 4.988 billion yen ($33.96 million), representing a 7.1% increase.
  • Thailand experienced a 38.1% decline in orders, reaching 1.585 billion yen ($10.79 million).
• Europe recorded orders of 14.710 billion yen ($100.15 million), down 15.0%.
• North America saw orders of 26.943 billion yen ($183.44 million), increasing by 14.2%.
  • United States reported orders of 22.966 billion yen ($156.36 million), up 7.4%.

Read more: Japan Machine Tool Orders: June 2024