The Japan Machine Tool Builders' Association (JMTBA) reported that global orders for Japanese machine tools in November 2024 amounted to 119,327 million yen (U$756.71 million), representing a decrease of 2.6% compared to October 2024. This marked the second consecutive month of month-on-month decline. However, the figure showed a 3.0% increase compared to the same month of the previous year, indicating two consecutive year-on-year growth.

While domestic orders saw an increase due to strong demand within Japan, foreign orders, particularly large-scale ones, declined. This resulted in the overall total dipping below 120,000 million yen for the first time in three months.

Nevertheless, orders in November remained at a solid level owing to continued large orders. However, the momentum is not strong enough to indicate a genuine recovery in orders, and therefore, the association will continue to monitor market trends closely in the coming months.

Domestic orders in Japan for November 2024 reached 34,328 million yen (U$217.69 million), representing a 2.7% increase from October. This marks the first month-on-month growth in two months and a 5.0% year-on-year increase. It is also the first year-on-year growth in 27 months. When comparing major industries to October, the automotive industry saw a decrease of 18.5%, while the machinery industry experienced a 19.2% increase. The electronics and precision equipment saw a 3.2% decrease, and the aerospace, shipbuilding, and transportation equipment industry experienced a significant 56.8% decrease.

Overseas orders in November 2024  reached 84,999 million yen (U$539.02 million), reflecting a 4.6% decrease from October. This marks the first month-on-month decline in three months. However, on a year-on-year basis, overseas orders increased by 2.2%, marking the second consecutive month of annual growth. Regional breakdowns are as follows:

• Asia: 42,445 million yen (US$269.16 million), representing 15.1% decrease from October 2024.
  • China: 29,319 million yen (US$185.93 million), showing a slight increase of 1.1%.
  • India: 5,556 million yen (US$35.23 million), a decrease of 42.8%.
  • Thailand: 1,162 million yen (US$7.37 million), an increase of 26.9%.
• Europe: 14,416 million yen (US$91.42 million), a decrease of 12.7%.
• North America: 26,238 million yen (US$166.39 million), showing a 23.7% increase.
  • United States: 23,577 million yen (US$149.51 million), an increase of 35.3%.

Read more: Japan Machine Tool Orders: October 2024