The Japan Machine Tool Builders’ Association (JMTBA) reported that total machine tool orders received worldwide in December 2025 amounted to JPY 158,643 million (USD 1,010.63 million). This represents a 15.8% increase month-on-month (MoM) compared to November 2025, marking the first MoM growth in two months.

On a year-on-year (YoY) basis, orders rose 10.9%, extending growth to the sixth consecutive month. It was also the first time in nine months that total orders exceeded the JPY 150 billion level, signaling a recovery in manufacturing investment.

Overview: Overseas Demand Drives Positive Momentum

Both domestic and foreign orders increased compared to the previous month. In particular, overseas demand played a key role in supporting overall growth.

Despite ongoing volatility in the global economic environment, capital investment remains generally solid, and expectations remain positive for continued demand growth in 2026.

Domestic Orders: Strong MoM Growth, Flat YoY

Domestic orders in December totaled JPY 39,905 million (USD 254.21 million), rising 24.8% MoM but remaining flat year-on-year (±0%).

The figure exceeded JPY 35 billion for the first time in two months, indicating stable investment conditions in the domestic market.

By Major Industry (MoM Comparison)

• Automotive: +34.7%
• Industrial machinery: +21.8%
• Electronics & precision machinery: +12.4%
• Aerospace, shipbuilding & transport equipment: –7.9%

Foreign Orders: 15 Consecutive Months of YoY Growth

Foreign orders reached JPY 118,738 million (USD 756.41 million), increasing 13.1% MoM and 15.1% YoY, marking the fifteenth consecutive month of year-on-year expansion.

By Region

Asia

JPY 52,544 million (USD 334.73 million)

• –3.2% MoM
• +2.4% YoY

Country breakdown (compared with November figures):

• China: JPY 37,125 million (USD 236.50 million), –2.6%
• India: JPY 6,390 million (USD 40.71 million), +8.3%
• Thailand: JPY 1,523 million (USD 9.70 million), –5.9%

Europe

JPY 22,215 million (USD 141.52 million)

• +22.5% MoM
• +35.7% YoY

North America

JPY 41,455 million (USD 264.09 million)

• +40.9% MoM
• +29.6% YoY

United States:

JPY 34,581 million (USD 220.30 million), +31.7% MoM

North America showed the strongest recovery momentum in December, while Europe recorded robust annual growth.

Full-Year 2025 Summary

Total machine tool orders for 2025 reached JPY 1,604,319 million (USD 10,220.22 million), representing an 8.0% increase from the previous year. This marks the first year-on-year growth in three years and the first time annual orders exceeded JPY 1.6 trillion.

However, total domestic orders for the full year stood at JPY 440,862 million (USD 2,808.49 million), down slightly by 0.2% from the previous year, indicating that overall recovery was primarily driven by overseas demand.

Overall, December 2025 closed the year on a positive note for Japan’s machine tool industry, laying the foundation for continued investment momentum in 2026 amid ongoing global economic uncertainties.
 

(1 JPY = 0.0064 USD)
 

Read more: Japan Machine Tool Orders: November 2025