Construction machinery orders turn positive for Japanese manufacturers

Machinery orders in construction increased 14.1% in February 2025, as compared to the same quarter a year before, according to the Japanese Cabinet Office.

That followed an 8.4% increase in January 2025 and marked the second consecutive month of growth after two negative quarters of -17.3% and -9.2% in November and December 2024 respectively.

Machinery orders in Japan in general appear to be on an upward trend, according to official figures, although they date to a period before the US announced sharp increases in trade tariffs on countries around the world, before suspending them for 90 days. In the interim, US tariffs on Japanese goods have still risen by 10% and it faces higher sector-based auto, steel and aluminum tariffs. 

Japan was due to start negotiations over tariffs with the US today (Wednesday) in Washington, with auto and agricultural sector duties up for discussion. Japan’s economic revitalisation minister Ryosei Akazawa is in charge of tariff negotiations for Japan.

The total value of machinery orders received by 280 manufacturers operating in Japan increased by 3% in February, as compared to the previous month.

Private sector machinery orders, excluding volatile ones for ships and those from electric power companies increased a seasonally adjusted 4.3% in February.

Source: Cabinet Office, Japan