Japanese machine tool orders fell below 90 billion yen in 76 months

2019-09-30    Internet    1405

Japanese machine tool orders that are the leading indicators of the economy are getting weaker.

According to the "Nihon Keizai Shimbun" report, the Japan Work Machinery Industry Association (referred to as: Japan Labor Union) released data on September 10, Japan's machine tool orders in August (Express value) decreased by 37.1%, to 88.3 billion yen, After 76 months, it is less than 90 billion yen (about 5.9 billion yuan).

According to reports, Japanese machine tool orders fell below 100 billion yen in June as a stagnation line, and are now further falling.

Japan’s domestic demand fell 40.1% to 37.3 billion yen, and external demand fell 34.6% to 50.9 billion yen.

The Japanese trade union said that "although there are orders for government subsidies such as small and medium-sized enterprises, the overall orders are reduced. Domestic demand is weaker than expected. External demand is affected by trade protectionism, and the United States is facing a severe situation."

In addition, there are many Japanese companies that have long vacations in the Bonan Festival in August, and there are fewer working days compared to previous years, which is considered to have an impact on orders.

Japanese machine tool maker Daxie’s orders fell 31.1% to 11.1 billion yen. Orders related to cars in Japan and from Germany are falling. Affected by trade protectionism, the expansion of tariff targets and tariff increases are still continuing. The company said that “the US domestic economy is also worrying”.

Japanese domestic machine tool manufacturer

Japan’s trade union president Iizuka said that the overall order value of the machine tool reached 100 billion yen, which is “a level of profitability”. Japanese machine tool orders fell to 98.9 billion yen in June, falling below 100 billion yen in 32 months, but recovered to 101.3 billion yen in July. It fell below 90 billion yen for the first time since April 2013.