JP Market | Monthly Machine Tool Orders （May 2026)

The total value of machine tool orders in May 2026 reached ¥177.01 billion, representing a 6.3% decrease from April 2026 and marking the second consecutive month of month-on-month decline. Despite this slowdown, orders increased 37.5% compared with May 2025, extending the streak of year-on-year growth to eleven consecutive months.

Total orders remained above ¥120 billion for the 15th consecutive month, reaching the fourth-highest level on record. Although both domestic and overseas demand declined from the previous month, they remained at historically high levels, with total orders posting a year-on-year increase of more than 37%.

Looking ahead, demand for capital equipment is expected to continue growing. Domestic demand is likely to be supported by government policies, while strong overseas demand driven by investments in AI and robotics is expected to help offset uncertainties arising from the global geopolitical and economic environment. Nevertheless, attention should be paid to the potential impact of inflationary pressures on future capital investment.

Domestic Orders

Domestic orders amounted to ¥45.33 billion, down 8.0% from April, but still 37.3% higher than the same month last year.

By major industry sector, compared with April:

• Industrial machinery orders declined by 7.6%
• Motor vehicles orders declined by 17.1%
• Electrical and precision machinery orders declined by 34.3%
• Aircraft, shipbuilding, and transport equipment orders increased by 89.7%

Foreign Orders

Foreign orders totaled ¥131.68 billion, down 5.7% from April, marking the second consecutive month of month-on-month decline. However, they were 37.6% higher than a year earlier, representing the twentieth consecutive month of year-on-year growth.

By region:

Asia

Orders from Asia amounted to ¥75.03 billion, a 1.6% decrease from April, but a 66.1% increase compared with the same month last year.

Europe

Orders from Europe totaled ¥16.80 billion, down 17.2% from April, but up 6.1% year-on-year.

North America

Orders from North America reached ¥37.36 billion, declining 9.0% from April. Nevertheless, they increased 13.9% compared with the same month of the previous year.

Overall, while monthly order levels moderated in May, both domestic and overseas demand remain robust. Continued investment in advanced manufacturing technologies, particularly AI and robotics, is expected to support future growth, although inflation-related risks warrant close monitoring.

*This article is reprinted from JMTBA (Japan Machine Tool Builders' Association)

Source: https://www.jmtba.or.jp/english/wjmtbap/wp-content/uploads/2026/07/JMTBA-NOTES-2026-06.pdf