Tokyo, Japan – Japan’s machine tool orders rose 16.8% year-on-year in October 2025, reaching JPY 143,084 million, surpassing market expectations of a 9.9% increase and accelerating from the upwardly revised 11% growth in September.

The increase marks the highest level of orders since March, driven largely by a 20.7% surge in foreign demand, which totaled JPY 107,522 million. Domestic demand also contributed, growing 6.3% year-on-year to JPY 35,562 million.

On a year-to-date basis, total machine tool orders expanded 7% compared to the same period last year, reaching JPY 1,308,299 million, with foreign and domestic demand rising 9.8% and 0.4%, respectively.

Analysts attribute the strong growth to sustained global demand for precision machinery and Japan’s competitive manufacturing exports. The robust foreign orders highlight the continued resilience of Japan’s manufacturing sector amid global economic uncertainties.