Japan Machine Tool Makers Log 1st Drop in Domestic, Overseas Orders in 6 Yrs

Domestic and overseas orders for Japanese machine tools in June were both down from a year earlier, marking the first such double drop since September 2002, an industry group said Wednesday.

Overseas orders experienced its first fall in five months, down 2.7 pct to 71.6 billion yen, while domestic orders dropped 2.1 pct to 56.8 billion yen, down for the fifth consecutive month, the Japan Machine Tool Builders' Association said in a revised report.

Overall machine tool orders received by Japanese manufacturers in June dropped 2.5 pct to 128.4 billion yen, it said.

The association, however, remained optimistic. "Basically, the uptrend so far has not changed," an official said.

The total machine tool orders topped 100 billion yen for the 50th month in a row, and overseas orders in June were the second-highest ever for the month, the official said.

In the month, domestic orders fell from makers of general machinery, electric appliances and precision equipment, but those from automakers grew for the third straight month, the association reported.

Among orders from abroad, those from Europe rose 11.6 pct, while those from North America and Asia were down 19.9 pct and 4.9 pct, respectively, it said.