Japan’s machine tool order growth picks up in June

Machine tool orders in Japan have increased at a much faster rate in June compared to the previous month, data by the Japan Machine Tool Builders’ Association showed.

Orders rose 9.7% year-on-year to JPY 133,817 million in June, following a 4.2% growth in May.

June’s performance was mostly driven by a 14.6% surge in foreign orders to JPY 92,993 million, the data showed.

In the meantime, domestic demand was 0.1% lower to JPY 40,824 million in June, after a 7.9% drop in May.

In monthly terms, the nation’s machine tool orders rose by 7.5% in June, following a 3% increase in the prior month.

The Japanese Yen was 0.14% weaker on the day against the US Dollar, with the USD/JPY currency pair last trading at 161.025, with Fed Chair Jerome Powell’s semi-annual Congressional testimony now in focus.