Japan Machine Tool Orders Ease in May

Japan’s machine tool orders climbed by 50.4% year-on-year to JPY 193,102 million in July 2026, following a 52.8% surge in the previous month. The increase reflected robust demand across both domestic and overseas markets. Foreign orders rose 50.5% year-on-year to JPY 139,864 million, following a 56.0% increase in June, while domestic orders advanced 50.2% to JPY 53,238 million, after rising 45.5% in the previous month. On a monthly basis, total machine tool orders declined 5.1% in July, reversing sharply from a 15% increase in June. For the first seven months of the year, machine tool orders totaled JPY 1,248,243 million, up 37.8% from the corresponding period a year earlier, with foreign and domestic orders increasing 42.3% and 26.5%, respectively.

Japan’s machine tool orders surged 52.8% year-on-year to JPY 203,515 million in June 2026, following a 37.4% increase in the previous month and far exceeding market expectations of a 37.4% rise. This reflected robust demand across both domestic and overseas markets. Foreign orders climbed 56.0% to JPY 145,499 million after rising 37.7% in May, while domestic orders advanced 45.5% to JPY 58,016 million, following a 36.4% increase. On a monthly basis, total machine tool orders jumped 15.0% in June, reversing a 6.4% decline in the previous month. For the first half of the year, machine tool orders totaled JPY 1,055,281 million, up 35.7% from the corresponding period a year earlier, driven by strong growth in both foreign (40.9%) and domestic (22.8%) orders.

Japan’s machine tool orders grew by 37.4% year-on-year to JPY 176,883 million in May 2026, slowing from an over four-year high of 45.1% in the previous month. Gains were softer in both foreign and domestic demand. Foreign orders increased 37.7%, following a 45.7% jump in April, while domestic orders climbed by 36.4% after a 43.4% advance previously. On a monthly basis, machine tool orders continued to decline, falling 6.4% in May after a 2.3% drop in the preceding period. For the January–May period, total machine tool orders increased by 32.2% compared to the same period a year ago to JPY 851,593 million, driven by a 37.9% rise in overseas demand and a 17.6% increase in domestic orders.