The Japan Machine Tool Builders’ Association (JMTBA) released its latest monthly data today, revealing a strong finish to 2025 for the sector. Total machine tool orders in December reached 158.64 billion yen ($1.05 billion at current exchange rates), marking a 15.8% sequential increase from November’s 137.01 billion yen. This represents the first month-on-month growth in two months and pushes orders above the 150 billion yen threshold for the first time in nine months. Year-over-year, orders climbed 10.9% from December 2024’s 143.09 billion yen, extending a streak of six consecutive annual gains. The surge was driven by both domestic and foreign demand, underscoring resilience in global manufacturing amid economic uncertainties. Domestic orders jumped 24.8% sequentially to 39.91 billion yen, rebounding from November’s 31.99 billion yen, though they remained flat (0% change) compared to the prior year. This performance exceeded 35 billion yen for the first time in two months, with notable gains in key industries: industrial machinery up 21.8%, motor vehicles soaring 34.7%, and electrical & precision machinery rising 12.4%. However, aircraft, shipbuilding, and transport equipment saw a 7.9% dip sequentially. Foreign orders, which account for the bulk of the total, rose 13.1% month-on-month to 118.74 billion yen from November’s 104.99 billion yen, marking the first sequential uptick in two months and the 15th straight year-over-year increase at 15.1%. Regionally, the picture was mixed but positive overall. North America led with a 40.9% sequential jump to 41.46 billion yen, up 29.6% annually, reflecting strong U.S. and Canadian demand. Europe followed with…
