Machine Tool Orders in Japan

Measures the year-on-year change in the total value of machine tool orders received by Japanese manufacturers, combining domestic and foreign demand. The industry association (JMTBA) releases a preliminary figure (速報) around the 10th and a final one (確報) at month-end.

The sum in yen of orders across all member manufacturers, compared with the same month a year earlier and expressed as a year-on-year percentage change.

It is a leading indicator of capital-goods investment and the global manufacturing cycle: Japan is one of the largest machine tool producers and its orders capture worldwide demand for automation. A strong reading points to firmer industrial investment at home and abroad.

It is highly volatile month to month owing to the small comparison base, calendar effects and one-off large orders, and the preliminary figure can be revised in the final release.