The Japan Machine Tool Builders' Association (JMTBA) reported the total value of machine tool orders in July 2023 was 114.34 billion yen ($782 million). However, despite the impressive figures, this value represents a 19.7% decline and marked the seventh consecutive month of year-on-year decline.

July marked a 6.3% decrease compared to June 2023, making it the first month-on-month decline in two months. While total orders slipped below 120 billion yen for the first time in two months, they still managed to maintain a streak of exceeding 100 billion yen for an impressive 30 consecutive months.

JMTBA expressed its opinion that the weakness in July's orders primarily stemmed from a decline in foreign orders due to the ongoing adjustment phase. It's crucial to closely monitor future trends for insights into the timing of a potential recovery.

Domestic (in Japan) orders in July 2023 amounted to 39,385 million yen ($270 million), showing a substantial 24.2% decline from the previous year, continuing the eleventh consecutive month of year-on-year decline. However, this represents a decline of 3.6% in orders from June and the first month of a month-on-month decline. Notably, the automotive industry witnessed an increase of 16.2% in orders, while the machinery industry saw a decrease of 10.3%, and the electronics and precision industry faced a decline of 25.0%. Meanwhile, the aerospace, shipbuilding, and transportation equipment industries showed a modest increase of 3.1% from June 2023.

Foreign orders in July 2023, saw a total of 74,955 million yen ($513 million), representing a 17.0% decrease from the previous year. However, this represents a decline of 7.7% in orders from June and the fourth consecutive month of month-on-month decline. Looking at specific regions with month-on-month comparison below:

• Asia had a total of 29,132 million yen ($199 million) in orders, showing a substantial decline of 12.5%.
  • China's orders amounted to 17,783 million yen ($122 million), experiencing a significant decrease of 6.9%.
  • Thailand had a total of 2,153 million yen ($15 million) in orders, marking a 21.2% increase from June 2023. However, this shows equality from the same month last year.
• Europe saw a notable increase in orders, reaching 19,146 million yen ($131 million), seeing a decrease of 1.1%.
• North America had a total of 24,576  million yen ($168 million) in orders, seeing a decrease of 6.3%.
  • United States with orders totalling 19,479 million yen ($133 million), marking a 12.6% decrease.

Read more: Japanese Machine Tools Orders in June 2023 continued to shrink by 21%