Japan’s machine tool orders increased by 8.1% year-on-year to JPY 119,719 million in August 2025, marking a stronger growth rate compared to market expectations and June’s 3.6% rise. This faster expansion was largely driven by a 12% surge in foreign orders, which reached JPY 87,889 million, helping to offset the decline in domestic demand. Domestic orders fell by 1.4% from the previous year to JPY 31,730 million. On a year-to-date basis, total machine tool orders grew by 5.2%, buoyed by a 7.9% increase in foreign orders, which more than compensated for a 1% drop in domestic demand.