Japan’s Machine Tool Orders Fell in April 2025, but Thailand Continues 4-Month Growth Streak

Latest Update May 7, 2025

The Japan Machine Tool Builders’ Association (JMTBA) reported that global orders for Japanese machine tools in April 2025 totaled 130.214 billion yen (approx. USD 912.13 million), marking a 13.8% decline from March 2025. This was the first month-on-month contraction in three months. However, compared to the same month last year, the figure rose by 7.7%, marking the seventh consecutive month of year-on-year growth.

Despite the monthly decrease, the order value remained above ¥120 billion for the second month in a row. While the overall sentiment remains cautious, the current level is considered a step above the beginning of the year.

Domestic demand showed slight weakness due to the conclusion of the fiscal and calendar quarter in the previous month. Meanwhile, foreign demand declined both month-on-month and year-on-year, reflecting a wait-and-see attitude amid uncertainty surrounding U.S. tariff policy.

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Domestic orders in Japan - April 2025

Domestic orders in Japan declined 30.2% from March to 34.38 billion yen (approx. USD 240.82 million), falling below the 40 billion yen mark for the first time in two months. The figure also represented a 5.5% decrease compared to the same month last year, although it remained slightly higher than the average for the past six months (excluding the final month of the fiscal year).

By industry sector, compared to March;

Automotive: -55.8%
Industrial machinery: -21.6%
Electronics & precision machinery: -9.5%
Aerospace, shipbuilding & transport equipment: -37.5%

Overseas orders - April 2025

Foreign orders fell 5.9% from March to 95.84 billion yen (approx. USD 671.31 million), marking the first month-on-month decline in three months. However, they still grew 13.4% year-on-year, marking the seventh consecutive month of annual growth.

By region:

Asia: Orders declined 13.1% from March to 48.238 billion yen (approx. USD 337.90 million), but grew 15.0% compared to the same month last year.
- China: Down 5.8% from Marchto 33.980 billion yen (approx. USD 238.03 million)
- India: Down 51.7% from March to 4.744 billion yen (approx. USD 33.23 million)
- Thailand: Up 5.6% from March to 1.267 billion yen (approx. USD 8.88 million)
Europe: Orders declined 16.6% from March to 13.776 billion yen (approx. USD 96.50 million), but fell 18.7% compared to last year.
North America: Orders increased 17.4% from March to 32.025 billion yen (approx. USD 224.33 million), and up 41.1% year-on-year.
- United States: Orders increased 10.2% from March to 27.226 billion yen (approx. USD 190.72 million)