Machine tool orders of main economies in Europe and Asia slide down by 44%

European machine tool manufacturers suffered a continue decreasing business climate

In the third quarter 2019, the UCIMU index showed an 18,6 % fall compared with the same period of the previous year. The absolute value of the index was 69 (basis 100 in 2015). The overall outcome was due to the negative trend registered both in the domestic and in the foreign markets.

In particular, the orders collected by the manufacturers in the domestic market highlighted a 19,3 % downturn compared with the period July-September 2018.

Even on the foreign front, the manufacturers registered a considerable reduction in their orders, down by 14 % versus the third quarter 2018.

Massimo Carboniero, President of UCIMU-Sistemi per produrre, stated: "Unfortunately, 2019 has confirmed to be a year of contraction for the Italian manufacturers of machine tools, robots and automation systems, who experienced a drop both in the domestic and in the foreign markets. The entrepreneurs of the sector are worried especially about the complexity of the international context, which translates to a partial freezing of investments in production systems in many markets, including Italy.

"The trade conflict between the two economic powers, (the United States and China), the recession of driving sectors for the manufacturing industry, (principally the automotive), and the outbreaks of war in hot spots of the world make the activity of the manufacturing enterprises particularly complicated and the future decidedly uncertain.

Manufacturing index in Japan slided continuously within this year, the value of core machinery orders slipped for the second consecutive month in August, suggesting uncertainty over businesses investment and deeper fissures in the broader economy due to slowing global trade.

Japanese enconomy is surviving the crisis under the trade war between China and US

The value of core machinery orders slipped for the second consecutive month in August, suggesting uncertainty over businesses investment and deeper fissures in the broader economy due to slowing global trade.

A highly volatile data point regarded as an indicator of capital spending in the coming six to nine months, core orders fell by 2.4 percent in August from the previous month, Cabinet Office data showed on Thursday.

According to data from Refinitiv, the orders — which exclude those related to shipping and electricity — were down 14.5 percent in August compared to a year earlier in the biggest year-on-year drop since November 2014. The figures have added to concern the world's third-biggest economy may be heading for a recession.

Japan's economy has relied on robust domestic demand and capital spending to sustain growth in recent quarters, amid a global slowdown that has hammered its export sector. Machine orders are a leading indicator of capital expenditure to come, although they are volatile from month to month.

The new orders of China decreased 41% from Jan. to July this year. 

Chinese tooling industry is confronting downward pressure under the demand construction upgrade now, China's machine tool industry enter into the key phase.

Main business of CMTBA (China Machine Tool & Tool Builders' Association) slipped 17.2%, total profit decreased 91.3%. Domestic machine tool industry declines monthly, while new order of metalworking machine tool yoy decreased 41%, on-hand order yoy slided 24.1%.

Note: This article is referred to thejapantimes, ETMM Online and ce.cn.