Japanese machine tool orders decline, Chinese demand decreases

The trend of Japanese machine tool orders as an economic indicator shows that the economy is decelerating. In the first half of 2012 (January to June), the order amount was calculated in the first half of the year, and the first decline in three years occurred. In addition to the sharp decline in orders for China, the slowdown in equipment investment due to the European debt crisis and the appreciation of the yen have led to a decline in international competitiveness. The Japan Machine Tool Industry Association announced on July 18 that the machine tool order for the first half of 2012 was 63.64 billion yen, a year-on-year decrease of 5.6%. It has fallen again since the Lehman crisis. External demand, which accounted for 70% of orders, decreased by 6.3% to 463.789 million yen, a large drop. In particular, China, the world's largest machine tool demand country, fell 8.8%, resulting in an overall decline. China's demand for automobiles, aircraft, shipbuilding and transportation machinery has fallen by 20%. Yokoyama Yohiko, president of the Japan Machine Tool Industry Association, said that “the pace of equipment investment has slowed slightly and the highest rate has been set back last year”. The appreciation of the yen also has a certain impact. The Japan Machine Tool Industry Association said that not only in Europe, but also in China, "the yen is depreciating, the euro is depreciating, and orders are flowing to German companies." Makino, the president of Makino Milling Machine Co., Ltd., said, "According to sales estimates, it will be reduced by about 20%." Domestic domestic demand in Japan also fell by 4% to 1996 billion 51 million yen. Although the car has grown year on year, electrical equipment and precision machinery have decreased by 20%. Whether it can reach 100 billion yen per month is a measure of the market situation. It has exceeded this standard for five consecutive months since February. Because of this, the annual order amount still maintains the original estimate of 1.2 trillion yen.

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