The Japan Machine Tool Builders’ Association (JMTBA) reported that total global orders for Japanese machine tools in June 2025 reached 133.16 billion yen (USD902.31 million), up 3.5% from May — marking the first month-on-month growth in three months.

However, compared to the same month last year, orders slipped slightly by 0.5%, representing the first year-on-year decline in nine months.

Despite the annual drop, total orders remained above 120 billion yen for the fourth consecutive month and exceeded 110 billion yen for the 52nd month in a row.

Domestic Demand Rebounds Across Key Sectors, Except Aerospace

Domestic orders stood at 39.87 billion yen (USD270.15 million), up 20.8% from May, and surpassed the ¥35 billion mark for the first time in three months. Still, they fell 2.3% year-on-year.

By major industry, compared to May:

• Automotive: +44.7%
• Industrial machinery: +16.4%
• Electronics & precision machinery: +21.5%
• Aerospace, shipbuilding & transport equipment: -39.9%

Overseas Orders Decline for Third Straight Month but Remain Up Year-on-Year

Overseas orders totaled 93.29 billion yen (USD632.16 million) in June, down 2.5% month-on-month, marking the third consecutive monthly decline.

Nevertheless, they edged up 0.3% year-on-year, extending the streak of annual growth to nine months.

By region:

• Asia: Orders increased 3.3% from May to 46.68 billion yen (approx. USD  316.27 million), but grew 6.0% compared to the same month last year.
  • China: Up 4.0% from May to 32.18 billion yen (approx. USD 218.03 million)
  • India: Rose 13.6% from May to 5.14 ​billion yen (approx. USD 34.85 million)
  • Thailand: Declined 43.7% from May to 1.50 billion yen (approx. USD 10.16 million)
• Europe: Orders increased 0.5% from May to 15.92 billion yen (approx. USD  107.86 million), but declined 8.0% compared to last year.
• North America:  Orders decreased 13.9% from May to 28.24 billion yen (approx. USD 191.36 million), and up 19.7% year-on-year.
  • United States: Orders decreased 14.0% from May to 24.93 billion yen (approx. USD 168.92 million)

Outlook: Stable Demand Amid U.S. Tariff Uncertainty

While overall order levels remain high, supported by domestic demand recovery, uncertainty stemming from U.S. tariff policies continues to weigh on market sentiment, prompting manufacturers to maintain a cautious approach.

(1 JPY = 0.0068 USD)

Read more: Japan Machine Tool Orders: April 2025