The Japan Machine Tool Builders' Association (JMTBA) reported the total value of machine tool orders in August 2023 was 114.76 billion yen ($769 million), indicating a slight uptick of 0.4% compared to July 2023. This growth is an encouraging sign after two consecutive months of decline. However, when compared to the same period last year, there was a notable decline of 17.6%, marking the eighth consecutive month of year-on-year decrease.

While the total orders remained below 120 billion yen for the second consecutive month, they managed to exceed the 100 billion yen threshold for the 31st consecutive month.

JMTBA expressed that orders in August continued to be in an adjustment phase for both domestic and foreign orders. They will closely monitor economic trends to determine when the economy will pick up in the future.

Domestic (in Japan) orders in August 2023 amounted to 35.72 billion yen ($239 million), showing a significant drop of 31.0% compared to the same month last year, marking the twelfth consecutive month of year-on-year decrease. However, this represents a decline of 9.3% in orders from July and the second consecutive month of month-on-month decline. Notably, the automotive industry witnessed an increase of 6.4% in orders, while the machinery industry saw a decrease of 16.0%, and the electronics and precision industry faced a decline of 41.0%. Meanwhile, the aerospace, shipbuilding, and transportation equipment industries showed a modest increase of 16.2% from July 2023.

Foreign orders in August 2023, saw a total of 79.04 billion yen ($530 million), representing a 9.7% decrease from the same period last year, marking the eighth consecutive month of year-on-year decline. However, this showed a positive trend, rising by 5.5% over July. This indicates the first month of month-on-month growth in five months. Looking at specific regions below:

• Asia demonstrated significant growth, surging by 16.5% from July to 33.95 billion yen ($227 million). 
  • China's orders amounted to 19.02 billion yen  ($127 million), seeing a decrease of 6.9%.
  • India with orders totalling 4.36 billion yen ($29 million), experienced a significant decrease of 25.8%.
  • Thailand had a total of 3.43 billion yen ($23 million) in orders, marking a 59.0% increase from July.
• Europe experienced a decline of 7.6% from July to 17.69 billion yen ($119 million).
• North America inched up by 0.9% from July, totalling 24.79 billion yen ($151 million) in orders.
  • United States with orders totalling 22.50 billion yen ($151 million), showing stabilization with July.

Read more Japan Machine Tools Orders in July 2023 continued to shrink by 20%