Japan Machine Tool Orders Ease in November

Japan’s machine tool orders rose by 10.6% year-on-year to JPY 158,240 million in December 2025, missing market forecasts of a 14.2% increase and easing from a 16.8% advance in the previous month. Still, this marked the highest level of orders since March 2022, driven by a 15.1% gain in foreign demand, which reached JPY 118,769 million. In contrast, domestic orders fell by 1.1% from a year earlier to JPY 39,471 million. On a monthly basis, orders climbed by 15.5% in December, rebounding from a 4.7% drop in the preceding period. Considering the full year of 2025, total machine tool orders expanded by 8% compared to the same period in the previous year to reach JPY 1,603,916 million, with foreign orders rising by 11.5%, while domestic demand decreased by 0.3%.

Japan’s machine tool orders rose 14.2% year-on-year to JPY 136,291 in November 2025, slowing from a 16.8% increase in October, which had marked the highest growth in seven months. Domestic demand declined 8.1% from a year earlier to JPY 31,537, while foreign orders advanced by 23.2% to JPY 104,754. On a year-to-date basis, total machine tool orders expanded by 7.7% compared with the same period a year ago to JPY 1,444,962, with foreign demand up 11.1% and domestic demand down 0.3%.

Japan’s machine tool orders climbed by 16.8% year-on-year to JPY 143,084 million in October 2025, surpassing market estimates of a 9.9% rise and accelerating from an upwardly revised 11% increase in the previous month. This marked the highest level of orders since March, driven by a 20.7% surge in foreign demand, which reached JPY 107,522 million. Additionally, domestic orders grew by 6.3% from a year earlier to JPY 35,562 million. On a year-to-date basis, total machine tool orders expanded by 7% compared to the same period a year ago to JPY 1,308,299, with foreign and domestic demand up 9.8% and 0.4%, respectively.