Survey on Japanese Machine Tool Orders from January to October 2011

The latest preliminary data on machine tool orders released by the Japan Machine Tool Industry Association (JMTBA) shows that in October 2011, Japan's machine tool orders were 101.014 billion yen, down 8.6% from the previous month, but still up 25.9% year-on-year. From January to October, Japan's machine tool orders exceeded 100 billion yen for 9 months, and only fell below 100 billion yen in August. From January to October 2011, Japan's cumulative machine tool orders amounted to 1.098 trillion yen, an increase of 40.2% over the same period in 2010, and the order value exceeded the trillion yen mark. From the perspective of domestic and foreign demand, in October, Japan's domestic machine tool orders were 31.704 billion yen, down 10.7% month-on-month, but up 25% year-on-year. In October, Japan's overseas machine tool orders were 69.31 billion yen, down 7.6% month-on-month, but up 26.3% year-on-year. From January to October, the cumulative domestic orders for Japanese machine tools were 348.505 billion yen, a year-on-year increase of 42.2%; the cumulative overseas orders were 749.608 billion yen, a year-on-year increase of 39.3%. According to the forecast of JMTBA, the order value of Japanese machine tools in 2011 is expected to reach 1.3 trillion yen, an increase of about 30% compared with 2010. If this goal can be achieved, Japan's machine tool orders will basically return to the level of 2008. Although orders from China have decreased recently, orders from Europe and the United States have grown for 21 consecutive months, and the equipment investment plans of automobile and machinery companies in Europe and the United States have always maintained a slow growth trend. At the same time, due to the impact of the floods in Thailand, the machine tools and equipment of some enterprises in Thailand need to be replaced or repaired. After the situation stabilizes, the demand for machine tools and accessories will soar.