Total orders received by Japanese manufacturers of metal-cutting machine tools declined by -1.1% in the third quarter of 2025 compared with the previous quarter but were +7.7% higher than in the same period of 2024.
Within the total, domestic orders rose +3.5% quarter-on-quarter, while export orders fell -2.9%. Compared with Q3 2024, domestic orders were up +1.4%, and export orders increased +10.4%.
The Japan Machine Tool Builders’ Association (JMTBA) publishes monthly data on orders received by Japanese manufacturers. Unlike U.S. statistics, which capture total market demand, these figures reflect the business activity of domestic producers. The data covers metal-cutting machine tools only, as metal-forming machines are reported separately by another industry association. However, because Japan’s import penetration in this sector is relatively low, domestic order data provide a useful indicator of overall market conditions.
In Q3 2025, the composition of total orders was 29% domestic and 71% overseas, reflecting a historically high export ratio, though slightly below that recorded in Q2. The leading export destinations were China (34% of total exports YTD), the United States (27%), the European Union (12%) and India (7%).
The JMTBA also provides a breakdown of domestic orders by industry. The largest segment is industrial machinery (40% of total domestic orders), though this category includes a broad range of sub-sectors. The automotive industry accounted for 19% of total domestic orders in Q3 2025, with roughly two-thirds related to component manufacturing.
The strongest year-to-date growth in domestic demand came from the aircraft, shipbuilding, and transport equipment sector, where orders were up +53% compared with the first nine months of 2024. The steepest decline was recorded by trading companies (-22%), while automotive orders also fell by -10% over the same period.
You can access the JMTBA report at https://www.jmtba.or.jp/english/category/machine-tool-orders/ (28 October 2025) or we can send you the summary of the data – contact Martin Redhead at MTA (email: [email protected]) if you want this analysis. A chart showing the 12-month rolling totals is available to download below.