Japanese Machine Tool Orders Decline 32 Percent
The total value of Japanese machine tool orders in June 2020 was 67.19 billion yen, an increase of 31.1% compared to May 2020 and marked the first month of month-on-month growth in three months. However, this figure represented a decrease of 32.1% compared to the same month of 2019 and marked the twenty-first consecutive month of year-on-year decline reports JMTBA (Japan Machine Tool Builders Association).
The total value of orders received exceeded 60 billion yen for the first time in 3 months, but as of June, it was less than 70 billion yen for the first time in 11 years since 2009 (34.97 billion yen), thus demand has been sluggish due to the spread of COVID-19.
“Although we can see some movements toward recovery, it is far from the end of the spread of infectious diseases and we would like to pay close attention to future trends.”
Domestic orders rose by 28.4% over May, amounting to 23.36 billion yen. This marked the first month of month-on-month increase in three months; however this figure was a decline of 38.0% from the same month of 2019 and marked the nineteenth consecutive months of year-on-year decline. Looking at major industries, orders compared to May rose by 16.9% in industrial machinery, by 47.2% in motor vehicles, by 56.4% in electrical & precision machinery, and by 62.1% in aircraft, shipbuilding & transport equipment.
Export orders rose by 32.6% over May to 43.83 billion yen and marked the first month of month on-month growth in six months. Export orders howver showed a decrease of 28.4% from the same month of 2019, and marked the twenty-first consecutive month of year-on-year decline.
By region, orders from Asia rose by 13.7% over May to 21.21 billion yen, a decline of 15.3% from the same month of the previous year. Orders from Europe rose by 38.5% over May to 6.21 billion yen representing a decrease of 56.5% from the same month in 2019. Orders from North America rose by 56.1% over May, amounting to 14.68 billion yen, a decline of 30.5% from the same month of 2019.
For more information: www.jmtba.or.jp
