Japan Machinery Sector: May 2026 machine tool orders (final): Robust demand environment continues

Research evidence excerpt

Japan Machinery Sector: May 2026 machine tool orders (final): Robust demand environment continues

Global Research

26 June 2026ab

Japan Machinery Sector Equities

JapanMay 2026 machine tool orders (final): Robust

demand environment continues Factory Equipment

Tsubasa Sasaki

Analyst

tsubasa.sasaki@ubs.com

Strong orders continue in China and North America, with recovery progressing +813-5208 6207

in Japan

The JMTBA announced May 2026 final machine tool orders at 3:00 pm on 25 June.

Orders remain strong in China and North America. Domestic demand had lagged in its

recovery, but recent data show signs of improvement. By industry, orders are also

recovering across a broad range of sectors. Against this backdrop, we believe the

demand environment for machine tools and factory automation remains favorable

overall. Geopolitical risks in the Middle East, which had been a concern, are also easing.

In addition, orders remain firm in electrical and precision machinery, including AI- and

semiconductor-related applications, as well as in aircraft, shipbuilding and

transportation machinery. The automotive sector is also on a recovery trend. Taking

these factors into account, we expect orders to remain resilient going forward.

Overall of final machine tool orders in May 2026

Machine tool orders in May totaled ¥177.0bn (+38% yoy, -6% mom). By region,

domestic orders were ¥45.3bn (+37% yoy, -8% mom); North America was ¥37.4bn

(+14% yoy, -9% mom); Europe ¥16.8bn (+6% yoy, -17% mom); China ¥51.2bn (+66%

yoy, -4% mom); and Asia ¥23.8bn (+67% yoy, +4% mom). Orders remained firm in

North America and China, while recovery progressed in Japan. Europe, by contrast, was

sluggish. By industry, orders recovered across a broad range of sectors, including autos,