FX.co ★ Japan Machine Tool Orders Highest in Nearly 4 Years

In December 2025, Japan's machine tool orders experienced a 10.6% year-on-year increase, totaling JPY 158,240 million. This growth fell short of market expectations for a 14.2% rise and was a slowdown from the 16.8% growth observed in the previous month. Despite this, December's orders were the highest recorded since March 2022, primarily driven by a 15.1% surge in foreign demand, which amounted to JPY 118,769 million. Conversely, domestic orders saw a slight decline of 1.1% from the previous year, totaling JPY 39,471 million. On a month-to-month basis, orders rose by 15.5% in December, recovering from a 4.7% decline in the prior period. Analyzing the entirety of 2025, total machine tool orders increased by 8% compared to the previous year, reaching JPY 1,603,916 million, with foreign demand up by 11.5% while domestic demand slipped by 0.3%.