Japanese Machinery Orders Rebound in December, Outlook Positive for Q1 2025
Tokyo, Japan – Japan’s Cabinet Office released its Machinery Orders Statistics Survey report for December 2024 and the outlook for the first quarter of 2025, showing a rebound in new orders and a positive outlook for the coming months.
December 2024
- Total new machinery orders (excluding ships and electric power utilities) rose by 10.3% year-over-year to JPY 10.05 trillion.
- Domestic orders increased by 10.6% to JPY 5.35 trillion, while overseas orders jumped by 9.8% to JPY 4.70 trillion.
- The key drivers of growth were the manufacturing sector (+15.4%) and the non-manufacturing sector (+7.1%).
Outlook for Q1 2025
- New machinery orders are projected to increase by 2.4% year-over-year to JPY 28.59 trillion.
- Domestic orders are expected to rise by 2.2% to JPY 15.28 trillion, while overseas orders are forecast to gain 2.7% to JPY 13.31 trillion.
- The positive outlook is attributed to continued demand from the domestic market, particularly in the manufacturing sector, as well as a gradual recovery in overseas orders.
Comment
The Cabinet Office’s report indicates a positive trend in Japan’s machinery industry. The strong December orders and the optimistic outlook for the first quarter suggest that the sector is poised for continued growth in 2025.
Factors supporting this growth include rising capital investment by businesses, increased demand for automation and productivity-enhancing machinery, and a favorable economic environment. However, uncertainties surrounding the global economy and supply chain disruptions remain potential headwinds.
Overall, the Machinery Orders Statistics Survey report provides encouraging news for Japan’s machinery industry and suggests that the sector is well-positioned to contribute to the country’s economic recovery in the coming months.
Machine Order Statistics Survey Report (December 2024 and outlook for January-March 2025)
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