Japan's machine tool orders rebounded for the first time in three months in September 2024. Orders reached 125.36 billion yen (US$814.01 million), a 13.2% increase from the previous month. This marks the second time this year that orders have exceeded the 120 billion yen threshold, according to the latest data from the Japan Machine Tool Builders' Association (JMTBA). However, on a year-on-year basis, orders declined by 6.4% for the second consecutive month.

The association attributed the increased orders in September to seasonal factors and other factors, both domestic and overseas. However, the momentum is not strong enough to indicate a genuine recovery in orders. Therefore, the association will be closely monitoring future trends.

Domestic (in Japan) orders in September 2024 totaled 41.529 billion yen (US$269.66 million), marking a 29.0% increase from the previous month. This represents the first month-on-month growth in three months. However, when compared to the same period last year, orders declined by 7.8% for the 25th consecutive month.

Key industries experiencing growth in September compared to August include:

• Automotive: 3.8%
• Machinery: 11.0%
• Electronics and Precision: 128.1%
• Aerospace, Shipbuilding, and Transportation Equipment: 8.2%

Overseas orders in September 2024 amounted to 83.831 billion yen (US$544.34 million), marking a 6.7% increase from the previous month. This represents the first month-on-month growth in three months. However, on a year-on-year basis, orders declined by 5.7% for the second consecutive month.

Regional breakdown are as follows:

• Asia: 42.806 billion yen (US$277.95 million), a decrease of 0.2% from August 2024.
  • China: 27.418 billion yen (US$178.03 million), a decrease of 4.0%.
  • India: 5.531 billion yen (US$35.91 million), an increase of 5.0%.
  • Thailand: 1.809 billion yen (US$11.75 million), an increase of 74.3%.
• Europe: 13.503 billion yen (US$87.68 million), an increase of 26.1%.
• North America: 24.777 billion yen (US$160.89 million), an increase of 7.8%.
  • United States: 22.158 billion yen (US$143.88 million), a decrease of 8.1%.

Read more: Japan Machine Tool Orders: August 2024