Japanese machine tool orders continued to strengthen in Q2 2026. Total orders were +45.2% higher than in Q2 2025 and increased +17.2% from Q1, with both domestic and export demand contributing to the improvement.
Domestic orders rose +26.9% quarter-on-quarter and +42.3% year-on-year, while export orders increased +14.0% quarter-on-quarter and +46.3% year-on-year. Exports accounted for 73% of total orders in Q2, remaining high by historical standards.
The data, published monthly by the Japan Machine Tool Builders’ Association (JMTBA), cover orders received by Japanese machine tool manufacturers rather than total market demand. The series covers metal-cutting machine tools, with metal-forming machinery reported separately. However, Japan’s relatively low import penetration means the data remain a useful indicator of overall market conditions.
June provided further evidence of strong demand. Domestic orders rose +28.0% from May to ¥58.0 billion, +45.5% above June 2025. Orders from industrial machinery increased +59.6% month-on-month, while motor vehicle orders rose +63.4% and electrical and precision machinery orders increased +89.9%. Aircraft, shipbuilding and transport equipment orders fell -65.8%.
Foreign orders increased +10.4% from May to ¥145.4 billion, the first month-on-month increase for three months. They were +46.3% higher than a year earlier and exceeded the previous record of ¥143.0 billion, set in March 2026. By region, orders from Asia rose +8.5% month-on-month and +74.4% year-on-year to ¥81.4 billion. European orders increased +15.2% month-on-month and +21.6% year-on-year to ¥19.4 billion, while North American orders rose +8.8% month-on-month and +44.0% year-on-year to ¥40.7 billion.
You can access the JMTBA report at https://www.jmtba.or.jp/english/category/machine-tool-orders/.