Machine tool orders fell for the 12th consecutive month in April

Abstract According to the Japan Machine Tool Industry Association, in April 2012, the total value of machine tool orders in Japan reached 81.963 billion yen, marking a significant drop of 23.6% compared to the same period in the previous year. This marked the twelfth consecutive month of year-on-year decline, signaling ongoing challenges for the industry. The data also revealed that orders for foreign-owned machine tools in Japan totaled 54.719 billion yen, down 25% from the previous year, continuing a seven-month streak of declines. Despite the overall downturn, some sectors showed resilience. Orders for aircraft-related machine tools exported to the United States increased by 1.1% year-on-year, showing strength in this key market. However, demand from China plummeted sharply, with Japanese machine tool orders falling by 57.5% year-on-year. Orders for precision instruments dropped even more dramatically, declining by over 80%. On the other hand, orders for general machinery such as metal processing and industrial equipment in Asia, including China, saw a modest increase of 1.4%, which was the first growth in 11 months. This suggests that while certain markets were struggling, others remained stable or showed signs of recovery. Domestic demand in Japan also declined, with machine tool orders reaching 27.244 billion yen in April, down 20.6% from the previous year. This was the eleventh consecutive month of decline. However, there were some positive signs: orders for machine tools used in aviation, shipbuilding, and transportation equipment rose by 8.6% year-on-year, while auto parts manufacturing saw an increase of 3.3%, marking the first rise in 11 months. These figures indicate that while the overall trend was downward, specific sectors still managed to show growth.