Japan's Machine Tool Orders Improved for the Third Consecutive Month, Affected by Chinese Demand

Machine tool orders fell 23.3 per cent in August from a year earlier to Y67.8bn, but the decline narrowed for the third month in a row, according to data released on Wednesday by the Japan Work Machinery Industry Association. China's infrastructure demand and orders from the auto industry have boosted overall demand, while Japan and Europe and the U.S. remain on the sidelines on equipment investment. It is understood that Japan's export orders to China have been increased year-on-year for three consecutive months, becoming an important support for Japanese machine tool orders. Data show that China's infrastructure demand and the surge in orders in the automotive industry, which eventually boosted overall demand for machine tools in Japan, eventually led to a three-month decline in machine tool orders in Japan.