The Japan Machine Tool Builders' Association (JMTBA) has reported that global orders for Japan machine tools in December 2023 reached a total of 127.09 billion yen (869 million USD). This indicates a 9.7% increase from the previous month, although a 9.6% decrease compared to the same month last year. Notably, the order volume has consistently remained above 100 billion yen for 35 consecutive months and exceeded 120 billion yen for the first time in 3 months.

JMTBA suggests that the month-on-month increase in December is due to domestic and international demand, but no major change in the order situation. They will keep a close eye on future trends.

Domestic (in Japan) orders in December 2023 amounted to 38.25 billion yen ($262 million), showing a notable increase of 17.0% compared to the previous month. However, when examining the figures yearly, this number has consistently decreased for the 17th consecutive month, marking a 9.5% decline compared to the same month in the previous year. The increase in purchase orders, when compared to November, is significant, with a rise of 21.7% in the automotive industry, 11.1% in the industrial machinery, 70.0% in the electronics and precision machinery, and 24.8% in the aircraft, shipbuilding, and transportation equipment.

Foreign orders in December 2023 closed at 88.84 billion yen ($607 million), reflecting a 6.8% increase from the previous month. However, it decreased by 9.6% compared to the same month in the previous year, marking a consecutive 12-month decline. Details by region are as follows:

• Asia recorded orders of 38.87 billion yen ($266 million), an increase of 15.4% from November 2023. 
  • China's orders amounted to 24.14 billion yen  ($165 million), increasing 9.5%.
  • India with orders totalling 6.32 billion yen ($43 million), a significant 51.7% increase.
  • Thailand had a total of 2.13 billion yen ($15 million) in orders, showing a 55.6% increase.
• Europe saw orders of 19.54 billion yen ($134 million), marking a 3.2% decrease.
• North America, including Canada and Mexico, had orders of 27.87 billion yen ($191 million), increasing by 4.4%.
  • United States with orders totalling 24.13 billion yen ($165 million), reflecting a 4.2% increase.

Read more: Japan Machine Tool Orders: November 2023 Shows Resilience Amidst Global Fluctuations