Japan construction sector: May MLIT statistics

Research evidence excerpt

Japan construction sector: May MLIT statistics

Global Markets Research

Japan construction sector: May MLIT statistics 1 July 2026

EQUITY: JAPAN CONSTRUCTION

Building construction orders up, civil engineering Research Analysts

orders down Japan construction Sho Sakabe - NSC

Average start price continues to rise, nonresidential start floor area sho.sakabe@nomura.com

declines +81 3 6703 1221

Building construction orders up, particularly for factories and warehouses, civil

engineering orders down for railway and water/sewage projects

The Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced May order

data for Japan's 50 biggest construction companies on 30 June, reporting a 2% y-y rise in

building construction orders in December (up 2% in Japan). Orders were down for offices,

accommodations, and stores in reaction to sharp growth a year earlier, but up for factories

and warehouses. Factory construction orders rose from a wide range of customers,

including manufacturers, nonmanufacturers, and municipal authorities, while warehouse

construction orders benefited from increased orders from the real estate sector. Moreover,

May building construction orders in Japan (orders of at least ¥1bn) were up y-y in terms of

value, number, and percentage of total building construction orders. Orders rose for large

projects despite rising interest rates and construction costs, but orders for smaller projects

look to have been weak because of orders being pushed back. Civil engineering orders

fell 22% y-y in May (down 5% in Japan). In Japan, orders rose for harbors/airports and

other projects, but fell for railways, water/sewerage, and power lines. We think defense-

related orders contributed to the rise in other orders. Overseas orders fell sharply on the