The Japan Machine Tool Builders' Association (JMTBA) reported that the global orders for Japan machine tools in October 2023 totaled 112.05 billion yen (775 million USD), marking a 16.3% decrease from the previous month and a substantial 20.6% decrease compared to the same month last year. However, the order volumn has remained above 100 billion yen for 33 consecutive months.

JMTBA suggests that the decline in October's orders is influenced by the exceptionally high order volume in the preceding month. They will closely monitor future trends, including the period for ordering pick-up trucks.

Domestic (in Japan) orders in October 2023 amounted to 33.64 billion yen ($232 million), indicating a 25.3% decrease from the previous month and a significant 24.5% drop compared to the same month in the previous year. This decline has persisted for 14 consecutive months, with the automotive industry decreasing by 22.4%, industrial machinery by 20.0%, and electronics and precision machinery by 40.3%. Meanwhile, aircraft, shipbuilding & transport equipment decreased by 26.7% from September 2023.

Foreign orders in October 2023 closed at 78.41 billion yen ($535 million), reflecting an 11.0% decrease from the previous month and an 18.7% decrease from the same month in the previous year. This marks the 10th consecutive monthly decline. Details by region include:

• Asia recorded orders of 30.55 billion yen ($211 million), a decrease of 5.7% from September 2023. 
  • China's orders amounted to 19.50 billion yen  ($135 million), experiencing a slight decline.
  • India, with orders totalling 2.97 billion yen ($21 million), experienced a significant 54.0% decrease.
  • Thailand had a total of 1.72 billion yen ($10 million) in orders, showing a 12.5% increase.
• Europe saw orders of 18.21 billion yen ($126 million), marking a 12.0% decrease.
• North America, including Canada and Mexico, had orders of 27.55 billion yen ($190 million), decreasing by 19.4%.
  • United States with orders totalling 24.69 billion yen ($171 million), reflecting a 14.8% decrease.

Read more Japanese Machine Tool Orders Surge in September 2023, Reaching Five-Month High