Japan’s Machine Tool Orders Slightly Down in May 2025, While Thailand Surges Over 2X

Latest Update July 8, 2025

The Japan Machine Tool Builders’ Association (JMTBA) reported that global orders for Japanese machine tools totaled 128.718 billion yen (approx. USD 882.23 million) in May 2025, a slight 1.1% decrease from April. This marks the second consecutive month of a month-on-month decline. However, the figure still represents a 3.4% year-on-year increase, continuing a streak of eight straight months of annual growth.

Orders in May remained above the ¥120 billion level for the third month in a row and surpassed ¥110 billion for the 51st consecutive month.

While monthly momentum slowed slightly, the year-on-year rise signals relative stability in demand. Still, overall trends indicate a cautious investment environment, with many businesses delaying capital spending decisions.

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Domestic orders in Japan - May 2025

Domestic orders in Japan declined 30.2% from March to 33.02 billion yen (approx. USD 226.29 million), down 5.2% compared to May 2024. Although this figure is below the average monthly value from the past year, it is still considered “reasonable” by industry observers.

By industry sector, compared to April;

Automotive: -9.2%
Industrial machinery: -4.6%
Electronics & precision machinery: -0.1%
Aerospace, shipbuilding & transport equipment: +48.7%

Overseas orders - May 2025

Foreign orders fell 5.9% from March to 95.70 billion yen (approx. USD 655.94 million), almost unchanged from April (-0.1%) but up 6.7% from May 2024—marking the 8th consecutive month of year-on-year growth.

By region:

Asia: Orders declined 6.4% from April to 45.17 billion yen (approx. USD 309.57 million), but grew 6.0% compared to the same month last year.
- China: Down 8.9% from April to 33.980 billion yen (approx. USD 238.03 million)
- India: Down 0.5% from April to 4.53 billion yen (approx. USD 31.03 million)
- Thailand: Up 210.1% from April to 2.66 billion yen (approx. USD 18.25 million)
Europe: Orders increased 14.9% from April to 15.83 billion yen (approx. USD 224.75 million), and rose 18.76% compared to last year.
North America: Orders increased 2.4% from April to 32.79 billion yen (approx. USD 224.33 million), and up 41.1% year-on-year.
- United States: Orders increased 6.5% from April to 28.99 billion yen (approx. USD 198.70 million)