Japan's Machine Tool Market in March is in Recession

Japan's March 2020 Industrial Production Index is Expected to Decline Significantly

1. According to the Japan Economic News report on March 31, according to the Japanese Ministry of Economy, Trade and Industry announced the February 2020 industrial production index quick report value, an increase of 0.4% from the previous January to 100.2, although it has increased for three consecutive months, However, they only showed a slight increase, and predicted that the industrial production index in March might decline sharply by 5.3%.
2. According to the above statistical quick report, both the electronic parts and chemical industries grew in February, but the transportation machinery including aircraft parts declined by 11.5% compared with last month. Under the influence of the new coronary pneumonia epidemic, not only the supply of components has been stagnant As a result, but automobile manufacturing has also reduced production. According to the survey results of the manufacturing industry's production forecast that predicts the growth of enterprises, it may decline significantly by 5.3% in March 2020 and may increase by 7.5% in April.
3. Japan's Ministry of Economy, Trade, and Industry said in the February assessment that the current industrial production is still in a "weak state of progress." In addition, the Ministry of Economy, Trade, and Industry believe that the investigation deadline is early March 2020, and the subsequent impact of the new coronary pneumonia epidemic has not been fully reflected in the data. In the future, it will face more severe and uncertain risk challenges.

Japan's exports in March 2020 fell sharply by 11.7%

1. According to the trade statistics of March 2020 (fast-reported value, based on customs clearance data) published by the Ministry of Finance of Japan (4) on March 20, the export volume in March was 66.357 million yen, a decrease of 11.7 compared with the same period of the previous year % Is the largest decrease since July 2016; it is mainly due to the stagnation of global economic activity due to the spread of the new coronary pneumonia epidemic, and the sharp decline in Japanese exports to the United States and Germany. It is estimated that after April 2020, as the global new coronary pneumonia epidemic continues to burn further, Xianqin will have a more severe impact on Japanese exports.
2. In addition, Japan ’s imports in March 2020 amounted to 63.529 million yen, a decline of 5.0% from the same period of the previous year, and the double-digit decline in the previous (2) month has slowed. Japan ’s trade surplus in March 2020 (export value minus import value) was 4.9 billion yen, showing a surplus for two consecutive months.
3. Japan's March exports to the United States amounted to 18.18 million yen, a significant decrease of 16.5% from the same period of the previous year, the largest decrease since the 311 East Japan Earthquake. Due to the global spread of the new coronary pneumonia epidemic, the number of cars exported to the United States Engines, aircraft engines, and other prime movers, construction and mining machinery, etc. have fallen rapidly. On the other hand, imports from the United States in March amounted to 74.53 million yen, an increase of 1.3%. The trade surplus with the US in March was 436.8 billion yen, the first decrease in three months.
4. In addition, Japan ’s exports to China in March amounted to 199.5 million yen, a decrease of 8.7% over the same period of the previous year, mainly due to the sluggish production of gearboxes and semiconductor device equipment for automotive components; China's imports amounted to 1,431.7 million yen, a 5% decline in the same period. The import of computer-related components and clothing performed poorly. Japan's trade deficit with China in March was 241.2 billion yen.

Japan's March machine tool export orders decline by 40.7%

1. According to the statistics released by the Japan Work Machinery Industry Association on (21) on April 21, the total number of domestic and foreign machine tool orders in March (2020) was 77.4 billion yen, a decrease of 40.7% from the same period of the previous year; of which, external demand orders 43.2 billion yen, a 43.7% decline in the same period, domestic demand orders were 34.2 billion yen, a 36.5% decline, especially in the automotive industry.
2. Japan ’s order for export of machine tools to China in March 2020 was 11.3 billion yen, a decrease of 43.8% from the same period of the previous year, showing negative growth for 25 consecutive months; due to the impact of the new coronary pneumonia epidemic, the company’s equipment investment willingness is still in a downturn. In addition, orders for working machines in the European region where the new coronary pneumonia epidemic continued to spread were 7.2 billion yen, a significant decline of 61.4%; orders for working machine exports to the United States were 12.2 billion yen, a decrease of 45.7%.
3. In addition, the Japan Work Machinery Industry Association also announced the cancellation of the "International Machine Tool Exhibition (JIMTOF)" originally scheduled to be held in Tokyo in December this year. It is reported that it was mainly affected by the extension of the Tokyo Olympics and Paralympics to 2021. It is difficult to ensure the exhibition venue.