UPDATE 1-Japan’s exports grow at slowest pace in eight months

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(details, adds context)

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* October exports grew slightly below expectations

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* Sept core machinery orders flat m/m vs forecast +1.8%

*Global supply constraints threaten growth outlook

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by Kantaro Komiya and Daniele Lucinco

TOKYO, Nov 17 (Businesshala) – Japan’s export growth hit a seven-month double-digit extension in October as US and China-bound car shipments slowed, highlighting risks to an export-dependent economy from global supply constraints. stopped.

The slow growth reflects Japan’s supply chain constraints that have been particularly disruptive to the car industry and bleak the outlook for overseas demand.

Exports rose 9.4% year-on-year in October, Finance Ministry data showed on Wednesday, slightly below the average market forecast for a 9.9% growth in a Businesshala poll. This followed a rise of 13.0% in the prior month.

By region, exports to China, Japan’s biggest trading partner, grew 9.5% in the 12 months to October, slowing from 10.3% in the previous month as car shipments to the country fell 46.8%.

US-bound shipments, another major market for Japanese goods, rose just 0.4% in October, also weighed down by a decline in car exports, which fell 46.4%.

Imports grew 26.7% in October, against the average estimate for a 31.9% increase, bringing the trade balance to a deficit of 67.4 billion yen ($586.60 million), compared to the average estimate for a 310.0 billion yen deficit.

Separate government data showed that core machinery orders, which serve as a leading indicator of capital spending in the coming six to nine months, were flat in September compared to the previous month, posting an expected 1.8% gain. were down with.

Weaker-than-expected core orders indicate corporate Japan’s reluctance to commit to stronger capital spending as global supply constraints pose risks to the output and export outlook.

After a 0.7% gain in the previous quarter, manufacturers were expecting core orders to grow by 3.1% in October-December.

Japan’s economy shrank faster than expected in the third quarter due to a decline in consumption, trade spending and exports, which was suffering from a resurgence in COVID-19 infections and disruptions in chip and parts supply.

The government is expected to announce a fiscal stimulus package of “several tens of trillions of yen” on Friday, aimed at easing the pain of the COVID-19 pandemic and reviving the economy.

($1 = 114.900 yen)

Reporting by Kantaro Komiya and Daniel Leussink; Additional reporting by Kentaro Sugiyama; Editing by Sam Holmes

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