Orders for machine tools came to 89.9 billion yen ($817 million) in December, plunging 33.6% on the year and declining for the 15th straight month, the Japan Machine Tool Builders' Association said Wednesday.

Investment in machine tools totaled just 259 billion yen in the October-December period, down 36.3% on the year and the lowest fourth-quarter value since 2009. Third-quarter investment had shrunk by 35.1%.

The full-year total of 1.23 trillion yen dropped 32.3% from 2018, the first decrease in three years and the biggest slide since 2009. The annual figure missed an initial forecast by roughly 400 billion yen, after exporters watered down their investment plans as the trade frictions between Washington and Beijing escalated in the spring.

Orders from abroad dipped 32.7% to 52.7 billion yen for December, while orders placed by companies in Japan tumbled 34.9% to 37.2 billion yen.

"Demand is soft among automakers, construction machinery builders and other general machinery makers, both in Japan and China," said an official at Makino Milling Machine. Orders received by the machine tool maker plunged 40.1% to 5.2 billion yen for December.

The erosion of confidence persists in 2020. Sheet metal processor Hamano Products might buy new machine tools in the second half of the year, CEO Keiichi Hamano said, but "if the economic conditions weaken, we'll consider delaying the investment."