The Japan Machine Tool Builders’ Association (JMTBA) reported that total machine tool orders from around the world in January 2025 amounted to 116.15 billion yen (USD 775.04 million), marking an 18.8% decrease from December 2024. This was the first month-on-month decline in two months. However, the figure still represented a 4.7% increase compared to the same month of the previous year, marking the fourth consecutive month of year-on-year growth.

Total orders fell below 120 billion yen for the first time in two months due to a nearly 20% drop in both domestic and foreign demand compared to the previous month. While January’s order volume was similar to the previous year, variations across industries and regions created an uneven situation, adding uncertainty to the overall outlook. Close monitoring of future trends will be necessary.

Domestic orders in Japan for January 2025 reached 31.99 billion yen (USD 213.51 million), down 19.9% from December. This marked the first month-on-month decline in three months. However, the figure still showed a 4.6% increase compared to the same month of the previous year, marking the third consecutive month of year-on-year growth.

By industry sector, compared to December; the automotive industry experienced a significant 55.5% increase, while the machinery industry saw a 6.5% decrease. The electronics and precision equipment saw a 19.4% increase, and the aerospace, shipbuilding, and transportation equipment industry experienced a significant 172.2% increase.

By industry, compared to December:

• Automotive industry: Down 30.9%
• Industrial machinery: Down 21.4%
• Electronics & precision machinery: Down 10.7%
• Aerospace, shipbuilding & transport equipment: Down 29.8%

Overseas orders in January 2025 totaled 84.15 billion yen (USD 561.53 million), down 18.4% from December, marking the first month-on-month decline in two months. However, foreign orders still showed a 4.7% increase compared to the same month of the previous year, marking the fourth consecutive month of year-on-year growth.

• Asia: 44.80 billion yen (USD 298.94 million), down 12.7% from December
  • China: 27.60 billion yen (USD 184.17 million), down 23.9%
  • India: 8.39 billion yen (USD 55.97 million), up 33.5%
  • Thailand: 1.06 billion yen (USD 7.05 million), down 17.0%
• Europe: 13.22 billion yen (USD 88.20 million), down 19.2% from December
• North America: 24.16 billion yen (USD 161.21 million), down 24.5% from December
  • United States: 20.77 billion yen (USD 138.58 million), down 28.2%

Read more: Japan Machine Tool Orders: December 2024