The Japan Machine Tool Builders’ Association (JMTBA) reported that total global orders for Japanese machine tools in July 2025 reached 128.357 billion yen (USD 871.95 million), down 3.6% from June — marking the first month-on-month decline in two months. However, compared with July of the previous year, total orders rose 3.6%, marking the first year-on-year increase in two months.

Total orders exceeded 120 billion yen for the fifth consecutive month and remained above 110 billion yen for 53 consecutive months. Compared to the same period last year, this was the first year-on-year increase in two months.

Market Overview

Although global economic uncertainty remains high, with the easing impact of U.S. tariff measures, demand for machine tools both domestically and internationally is expected to stay firm. Still, manufacturers continue to face downside risks that require careful attention.

Domestic Orders in Japan - July 2025

Domestic orders in July fell 11.1% from June to 35.45 billion yen (USD 240.54 million), down 0.7% compared with the same month last year. Despite exceeding 35 billion yen for the second consecutive month, both month-on-month and year-on-year growth rates turned negative.

By major industry compared to June:

• Automotive: +15.9%
• Industrial machinery: –18.4%
• Electronics & precision machinery: –31.2%
• Aerospace, shipbuilding & transport equipment: +30.7%

Foreign Orders - July 2025

Foreign orders totaled 92.91 billion yen in July, down 0.4% from June, marking the fourth consecutive month of month-on-month decline. However, compared with the same month last year, foreign orders rose 5.3%, achieving year-on-year growth for the 10th consecutive month.

By region:

• Asia: 47.55 billion yen (USD 322.56 million), up 1.9% from June and +8.6% year-on-year
  • China: 31.95 billion yen (USD 216.84 million), slightly down from June
  • India: 6.11 billion yen (USD 41.45 million), +13.6% from June
  • Thailand: 1.03 billion yen (USD 6.99 million), –31.3% from June
• Europe: 16.44 billion yen (USD 111.56 million), +3.3% from June and +11.8% year-on-year
• North America:  26.71 billion yen (USD 181.28 million), –5.4% from June and –0.9% year-on-year
  • United States: 24.93 billion yen (USD 168.92 million), –14.0% from June

Summary

While domestic machine tool orders slowed in July, overseas demand remained strong—particularly in Asia and Europe—helping support Japan’s machine tool market with continued year-on-year growth.

(1 JPY = 0.0068 USD)

Read more: Japan Machine Tool Orders: June 2025