Japan Capital Goods: Machinery Meter: FA strong, but watching production closely; HVAC improves

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Japan Capital Goods: Machinery Meter: FA strong, but watching production closely; HVAC improves

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Japan Capital Goods

Machinery Meter: FA strong, but watching

production closely; HVAC improves

Industry Overview

14 July 2026

July edition of Machinery Meter Equity

Each month, we publish a compilation of data points that we find useful in tracking trends Japan

across the sector. We believe this alongside our other data-driven reports, such as the Capital Goods

BofA Japan FA Indicator (see report Global Industrials: BofA Japan FA Indicator: remains

steady at elevated levels 22 June 2026), provides investors with a better sense of where Table of Contents

demand and earnings are headed. An Excel version of the data is also available upon

request. Factory Automation-related data points 2

Machine tool-related data points 3

FA: Trends strong, but watching production closely Construction and mining equipment-related 4

Momentum across industry indicators remained firm in May–June, with the main data points

exceptions being Japan robot production (-17% MoM in May) and servo motor output (- Farming equipment-related data points 5

18% MoM), likely reflecting Yaskawa's 1Q production issues. That said, while seasonality Power tools-related data points 6

may be playing a role, the improvement in production and shipment trends across key HVAC-related data points 8

product categories remains relatively modest compared with recent order momentum, Macro data points 8

suggesting the potential for a slower-than-expected production ramp-up. For example, Inventory data points 10

average LM guide production in April–May was broadly unchanged from February–March Recent reports relating to monthly data points 10