Japan Machine Tool Orders y/y

Machine Tool Orders data y/y is released monthly by the Japan Machine Tool Builders' Association. The figures show changes in the value of all orders received by machine tool building enterprises in Japan.

The report has two versions, preliminary and final. Both are usually well correlated, therefore more attention is paid to the preliminary publication.

Machine tools and industrial equipment are means of production. Therefore, the indicator is considered the leading indicator of capital expenditure and production sector activity: the growth of orders for machines tools precedes production growth. Conversely, a decrease in machine tool orders is considered to be unfavorable, as this means investors' uncertainty in the economic situation, a possible decrease in production and job cuts.

Since the index is considered a leading indicator of production and of national economy, the publication can have a limited impact on the Japanese yen. A higher than expected number should be taken as positive to JPY, while a lower than expected number as negative.