Japan Machine Tool Order Receipts Down 32 Pct in 2019

Economy

Tokyo, Jan. 15 (Jiji Press)--Machine tool orders received by Japanese makers dropped 32.3 pct in 2019 from the previous year before to 1,229.7 billion yen, the Japan Machine Tool Builders' Association said in a report Wednesday.

The substantial fall reflects wariness among companies about capital investment amid global economic uncertainty caused by the U.S.-China trade war, the industry group said.

According to the preliminary report, domestic machine tool demand contracted 34.3 pct and external demand 30.9 pct, both led by plunges in orders from general-purpose machine manufacturers and automakers. Demand declined in all three main markets--North America, Europe and Asia.

Affected by the trade conflict, order placements by companies in China have been slow since autumn 2018, the association said.

In December 2019 alone, order receipts fell 33.6 pct from a year earlier to 89.9 billion yen.

[Copyright The Jiji Press, Ltd.]

Jiji Press